The 3 Riskiest Robinhood Stocks to Hold Right Now
Investors on the Robinhood platform have become known for their willingness to take on risk. Airline stocks, cruise ship stocks, and other high-risk investments are often on the Robinhood Top 100 list. The commission-free trading platform is easy to use, and some argue that it may encourage too much trading. Certainly, making bets on risky businesses is easier than ever before. However, there are some stocks that even Robinhood investors may want to think twice about holding in their portfolios right now.
Moderna (NASDAQ: MRNA), Boeing (NYSE: BA), and ExxonMobil (NYSE: XOM) are three vulnerable stocks in the Robinhood Top 100 list that could fall sharply in price. Here's why you could incur significant losses from holding them in your portfolio:
What's made Moderna a hot buy this year is the progress the company's been making in developing a vaccine for COVID-19. Year to date, its shares are up more than 260%, dwarfing the S&P 500's 9% returns. In October, the company finished enrolling participants for its phase 3 trial of its vaccine candidate mRNA-1273. There's a lot at stake for Moderna if mRNA-1273 is successful, with CEO Stephane Bancel stating, "I believe that if we launch our COVID-19 vaccine, 2021 could be the most important inflection year in Moderna's history." While it's true that a successful vaccine would instantly add notoriety for a company that's yet to develop an approved drug, it's also by no means a guarantee that the trial will be successful. And with news coming out this week that Pfizer's vaccine with BioNtech is potentially up to 90% effective in preventing COVID-19, there's even more pressure on Moderna to release positive results of its own -- soon.
Source Fool.com
