What Stocks are Users Buying and Selling on Robinhood Right Now?
I love checking Robintrack.net and seeing what stocks individual investors are buying and selling. From a meta-level, the charts visualize what the majority of investors feel about a stock or the market in general. While not a crystal ball, I believe you can glean whether people are euphoric or have a “doom-and-gloom” mindset on a stock from a Robintrack chart. This information can be helpful if you own, plan to own, or want to short shares in a company.
If you don’t know what Robintrack is, check-out their homepage or an article I wrote on them last summer to understand how these charts work. They are essentially just an accumulation tool to track what stocks Robinhood users are buying and selling over time.
Let’s check on some popular names that have seen an uptick in activity the last month.
We are nowhere near the euphoria levels of this summer, but this is still quite the run-up for Beyond Meat shares. And as you can see, no matter what the price has done the past few months, investors have been pouring money into this fake meat company. It’ll be interesting to see what, if any, stock price users start selling shares again.
Advanced Micro Devices
The best performing S&P 500 stock in 2019, AMD brought a 148% return to shareholders last year. But unlike Beyond Meat, a lot of AMD shareholders took profits during the recent fourth-quarter run-up. This is likely because AMD is considered a cyclical stock and Beyond Meat is a high-growth name with a good story.
What’s really interesting is how many investors have bought into the stock over the last month. There hasn’t been any crazy news, so I wonder what has driven Robinhood users to buy up so many shares so quickly.
Another interesting chart, and one where I have to tip my hat to the collective Robinhood users. Typically, when I look at one of the Robintrack charts, I cringe because of all the people buying high and selling low. But in this case, it looks like the majority of investors bought the dip beautifully last winter, and just started to offload their gains this fall.
Still, I can’t help but wonder what the returns will be for the 30,000 users that bought shares at plus-260 price levels. My bet would be not so good, but what do I know.
A tough look for the collective Robinhood user here. After the terrible fires last fall and the insurmountable liabilities incurred, PG&E had to file for bankruptcy a year ago. That hasn’t stopped Robinhood users from buying and continually trying to buy the dip on shares this past year. It looks like a select few have made some gains from the absolute lows this fall, but besides that, it has been a tough go of it for a lot of PG&E shareholders.
A popular growth name (and one of my favorite long-term holds!), Square has fallen out of favor with Robinhood users the past 18 months. It has been a steady decline, with only a few positive weeks whenever there was a sharp pullback in the stock price.
I personally like that Square is coming out of favor, as fewer eyes on a stock mean more room for inefficient pricing, and hopefully more opportunities to buy shares at fair prices.
Not a crazy pullback in users, but it looks like some investors took profits after Costco’s blowout holiday season. We’ve seen a big increase in Costco’s stock the past year (as with many large-cap companies), and its earnings ratio now sits at a whopping 35. But that hasn’t fazed Robinhood users, as they’ve continually added shares every step of the way (I don’t know if this is a good or bad thing. Costco has basically been put into my “too hard” pile, like Nike and Starbucks, at its current price).
I don’t know how useful Robintrack is as a tool for my personal portfolio, but I do know that, as a finance nerd, I love perusing the website.
Disclosure: The author is not a financial advisor, and may have an interest in the companies discussed.