This year has been one that most investors won't soon forget. The outbreak of the COVID-19 pandemic brought on the fastest bear market in history, followed by a rapid recovery -- and even new all-time highs -- for some of the biggest and most well-known stocks out there.
At the same time, online stock trading app Robinhood has gained in popularity, particularly with young, unseasoned investors, who quickly turned to the platform in droves, hoping to cash in on the once-in-a-lifetime investing opportunity.
While not all of their favorite picks are worthwhile (and some are actually pretty risky), Robinhood investors have been laying out their hard-earned cash on these high-growth stocks during the trailing 30-day period ended July 27, 2020.
Driven to Tesla stock
Without a doubt, the single most popular stock among Robinhood investors over the past 30 days has been electric vehicle (EV) manufacturer Tesla (NASDAQ:TSLA). A whopping 217,873 of the platform's investors have added Tesla to their accounts in the past month, bringing the total to 537,244. This surge in popularity has led the company to become the eighth most popular stock among the investing app's members.
Robinhood investors are no doubt enthralled by Tesla's recent impressive rally. Even after a pullback over the past couple of trading days, the stock has still gained an impressive 49% in the past month alone, and 242% so far in 2020.
Tesla has made headlines in recent weeks, as it surpassed several major milestones that bode well for the company's future, while also helping line founder Elon Musk's pocket in the process. The electric carmaker reported its fourth consecutive quarter of GAAP profitability during its second-quarter financial report last week, making the stock eligible for inclusion in the S&P 500.
The recent electrifying rally drove Telsa's stock briefly above a market cap of $300 billion, though it has cooled somewhat over the past several days. The stock's performance has also resulted in a lucrative payday for Musk, making him eligible for an additional 1.69 million stock options. With a strike price of about $350, the enigmatic inventor could reap a payday of more than $2 billion, though he is restricted from selling the shares for the next five years.
Those metrics help to illustrate the bright future that's ahead for Tesla, so it's little wonder that Robinhood investors have the EV carmaker at the top of their lists.
Buying up Amazon stock
Another stock that's been a huge hit with Robinhood investors over the past 30 days is e-commerce giant Amazon.com (NASDAQ:AMZN), attracting 117,908 investors in the past month. This makes the tech giant the twelfth most popular holding overall among Robinhood members.
Amazon has been in the news since the coronavirus pandemic struck, no doubt keeping the company top-of-mind for Robinhood investors adding to their portfolios. The company's seen a surge in online retail orders from consumers sheltering in place. Demand for Amazon Web Services (AWS) -- its cloud computing service -- has also increased as companies across the globe scrambled to adopt remote work. Amazon Prime Video and Music have also helped entertain families stuck at home.
The tech titan is due to report its second-quarter earnings later this week, and the question isn't whether Amazon's business will grow, but by how much. During the first quarter, revenue growth accelerated to 26% year over year, up from 17% in the prior-year quarter, and marking the highest pace of growth since third-quarter 2018. CEO Jeff Bezos said that Amazon planned to spend all of its expected $4 billion operating profit, and potentially more, on "COVID-related expenses, getting products to customers, and keeping employees safe."
Robinhood investors are also no doubt aware of Amazon's surging stock price, which has rallied more than 64% so far in 2020, easily outpacing the breakeven performance of the S&P 500 and the NASDAQ, which has gained about 16%.
With multiple growth generators and the pandemic far from over, it's easy to see why Robinhood investors find Amazon such an intriguing buy.
A bite of Apple stock
Another high-profile stock that's a hit with Robinhood investors is none other than Apple (NASDAQ:AAPL). Considering the affinity that millennial consumers have for the tech titan's devices, it's little wonder that 89,346 Robinhood investors have added Apple to their plate over the past 30 days. This makes the device maker the sixth most popular stock overall on the investing platform.
While sales of the iconic iPhone took a hit last quarter, there are a number of other growth drivers that keep Robinhood investors coming back to the Apple well. Earlier this year, Apple reintroduced the iPhone SE, its budget-conscious device, giving cash-strapped consumers another smartphone option.
Additionally, the company's services and wearables categories have stepped in to help take up the slack. Over the past four quarters, Apple's services segment has produced more than $50 billion in revenue, growing to more than 18% of the tech giant's total sales. At the same time, the wearables, home, and accessories segment has generated more than $28 billion and grown to nearly 11% of Apple's total revenue.
Sales edged higher in Apple's fiscal second quarter (ended March 28, 2020), climbing 1% year over year, while services revenue reached a new all-time high and wearables notched a new quarterly record. This combination of growth drivers has helped Apple outperform the broader market, gaining 28% so far this year.
Robinhood investors are no doubt keen on Apple's continuing prospects and current performance, making the iconic device maker a favorite among Robinhood investors.