In much of 2020 and 2021, the mention of “Robinhood stock” may conjure up images of stock memes that make insane — and mostly short-lived — gains in the market.
Now investors are using it Robinhood Market (HOD -2.96%) Online trading platforms seem to be shifting their focus to more stable companies, possibly as the broad market sell-off of the past year has caused many investors to take a more cautious approach to where they put their remaining money.
For investors looking for some great companies to give further consideration from the current list of the most popular stocks among Robinhood users, look no further than Tesla (TSLA -1.63%), Amazon (AMZN -0.75%)and apples (AAPL 0.38%). These three Robinhood stocks are worth considering as buy-and-hold-forever investments.
Image source: Getty Images.
1. Tesla is leading the shift to EVs
There’s no denying the fact that Tesla stock has taken a bad turn in 2022. The electric vehicle (EV) maker’s stock price has fallen about 49% since the start of the year as some investors have abandoned the red-hot EV market. . And there are certainly some obstacles Tesla faces. Supply chain issues, rising material costs, and CEO Elon Musk’s current focus on the recently acquired Twitter purchase have all weighed on Tesla’s long-term stock price.
But zoom out and you’ll see a clearer picture of the company. Tesla is still the leading EV manufacturer in the world, and in the third quarter (end of Sept. 30), the company’s production continues to chugging along – rising 42% year over year to 343,830 vehicles produced.
Tesla is on track for a production rate of 2 million-vehicles in 2023, which helps it take another step towards achieving Musk’s goal of producing 20 million vehicles per year by 2030. ) earnings per share rose 69% in the quarter to $1.05.
Tesla stock isn’t cheap, with shares trading around 55 times the company’s earnings. But the current price is much more expensive than the stock’s P/E ratio of 344 this time last year.
Investors should be patient with some volatility in the current EV industry. But with Tesla already a leader in electric vehicles, production continuing to increase, and the company expanding its profits, this EV stock still looks like a good long-term buy.
2. Amazon still has many irons in the fire
A popular stock with the Robinhood crowd is Amazon and its large e-commerce business. Like many other stocks this year, Amazon’s stock price took a significant hit, sliding 43.8% in 2022.
But don’t let short-term deep drops keep you away from the company’s long-term opportunities. In addition to being a leading e-commerce juggernaut, the company’s Amazon Web Services (AWS) is a leading cloud computing platform. AWS brought the majority of Amazon’s profits, and in the third quarter (ended on September 30) the segment’s operating income rose 10% year over year to $5.4 billion.
And last but not least, Amazon also has a rapidly growing advertising business that is now the third-largest in the digital advertising space, behind only Sundanese script‘s Google and Platform Meta.
Amazon’s ad revenue rose 25% year over year in the most recent quarter to $9.5 billion. Considering that the US digital advertising market will reach a market of $315 billion by 2025 – up from $240 billion this year – Amazon can continue to capture more revenue as it grows.
Like Tesla, Amazon’s price-to-earnings ratio of 86 isn’t cheap, but with the company’s current leadership in e-commerce and cloud computing, and its growing advertising segment, there’s still plenty of room for Amazon to grow.
3. Apple is still the champion of tech
Apple may not be as attractive an investment as Tesla or Amazon, but if you’re looking for stability in your portfolio, it’s still a good investment. Sure, Apple’s stock has slid a bit over the past year — down 1.3% over the past 12 months — but it hasn’t experienced the massive 15.6% drop from S&P 500 in the same period of time.
The lack of volatility may be what initially drew some Robinhood investors to Apple stock, but it’s the company’s consistent growth that keeps them there. In the company’s fourth quarter (ended September 24) Apple’s sales increased 8% from last year’s quarter to $90.1 billion, and earnings increased 4% to $1.29 per share. Strong demand for Apple’s iPhone gave the company a boost in revenue, with segment sales up 10% from last year’s quarter to $42.6 billion.
And there could be more iPhone growth in the coming years as more consumers switch to 5G phones. Apple already holds 29% of the global 5G smartphone market today as this space is expected to become a nearly $668 billion market by 2030.
With Apple stock trading at just 24 times the company’s earnings, down from 27 times current earnings last year, investors can buy Apple stock at a discount today.
Remember to hold this stock for years
Tech and EV stocks are particularly volatile right now, so if you buy these stocks you’re likely to see some swings in stock prices in the near future. But being a long-term investor means holding stocks for five years or longer so they grow and ride out short-term volatility.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has a position at Apple. The Motley Fool has positions and recommends Alphabet (A stock), Alphabet (C stock), Amazon, Apple, Meta Platforms, Inc., and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
