4 Overvalued Robinhood Stocks to Avoid in October
StockNews
Published Oct 07, 2021 12:22PM ET
Updated Oct 07, 2021 01:30PM ET
4 Overvalued Robinhood Stocks to Avoid in October
Although most stocks traded on the Robinhood (NASDAQ:HOOD) platform are well-known, many should be avoided. Some of the worst stocks on the Robinhood100 are Carnival (NYSE:CUK) Corporation (CCL), Plug Power (NASDAQ:PLUG), Aurora Cannabis (NASDAQ:ACB), and Zomedica (ZOM) given valuation and growth concerns.The newly public Robinhood Markets , Inc.’s (HOOD) platform — known for pioneering commission-free stock trading with no account minimums — witnessed a big surge in first-time users joining its platform amid the COVID-19 pandemic. Its easy-to-use mobile app and features such as fractional trading have attracted more users to its platform especially Millennials and Generation Z.
However, according to JPMorgan Chase & Co. (NYSE:JPM) analysts, HOOD’s metrics of active users and app downloads plunged during the third quarter, worse than expected. Several investors were furious when it temporarily halted trading in some of the meme stocks. While stocks traded on the platform are considered the most popular ones, not all of them are good bets now.
Carnival Corporation & plc (CCL), Plug Power Inc. (PLUG), Aurora Cannabis Inc. (ACB), and Zomedica Corp. (ZOM) are some of the most-traded stocks on the HOOD platform. However, they look significantly overvalued at their current price levels. So, it could be wise to avoid them now.
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