4 Robinhood Stocks I Wouldn't Buy With Free Money
For more than a year, we've watched an interesting phenomenon take shape on Wall Street. The more volatile things have been for equities, the more enticing it's been to young and novice investors. How do we know this, you ask? Just take a closer look at the success of online investing app Robinhood.
Robinhood, which is known for its commission-free trades and gifting of free shares of stock to new members, gained in the neighborhood of 3 million new users in 2020. The thing is, the average age of its user base is only 31. It's become an investing destination that young and/or novice retail investors have flocked to.
In one respect, it's fantastic to see young people putting their money to work in a proven wealth creator (the stock market). Conversely, it's terrifying to see what they've been buying. With many focused on the short term and looking to get rich quickly, Robinhood's leaderboard (the 100 most-held stocks on the platform) is packed with momentum plays, penny stocks, and other undesirable companies.
Source Fool.com
