2 Robinhood Stocks With Market-Beating Potential

Robinhood Markets, the online broker that's grown in popularity thanks to its commission-free and easy-to-use stock trading platform, publishes the top 100 most-held stocks on its site through the Robinhood Investor index. While picking stocks based solely on their popularity is far from a perfect investing strategy, the list can serve as a good hunting ground for potential market-beating companies. And Amazon (NASDAQ: AMZN) and (NASDAQ: GOOGL)(NASDAQ: GOOG) are two examples of just that.

The world's largest e-commerce company has had a rough go of it over the last few years. After investing heavily in new staff and extra fulfillment infrastructure to match the pandemic-driven demand for online shopping, the company has struggled to generate consistent profits due to excess capacity. Management has attempted to address this problem through various cost-cutting initiatives including layoffs in certain divisions like Alexa and Luna, the company's cloud gaming platform. 

But despite the bad news capturing most of the headlines and even leading to a 30% decline in the stock price from recent highs, the company has been quietly taking steps to grow its bottom line while also solidifying its already impressive moat. Throughout 2021 and 2022, Amazon invested roughly $125 billion in capital expenditures with much of those dollars going toward the continued buildout of its fulfillment network. While this left the company with too much space in the short term, it also helped advance Amazon's already unbeatable delivery times, making it pretty much impossible for other e-commerce sites to compete with.  

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Source Fool.com