If you bought the 5 most popular Robinhood stocks 6 months ago, this is how many you would have today

These familiar names were the five most popular Robinhood actions on May 27, 2020:

Data sources: Robinhood and YCharts.

These are some of the darker days of the COVID-19 market crash in the spring. All of those stocks had fallen much more than the market as a whole and many Robinhood investors were eager to enjoy a quick turnaround. Sales of airplane seats and theme park tickets are sure to increase this summer, along with renewed interest in Ford trucks. GE had just found a buyer for its struggling consumer lighting business and the company’s aerospace segment would benefit from a renewed airline industry.

All of these investment theses assumed a swift recovery from the coronavirus lockdowns in the spring.

Image source: Getty Images.

How do these ideas work in reality?

Summer came and went. The pandemic has not gone away. There is light at the end of the tunnel thanks to several successful coronavirus vaccination programs, but the health crisis itself and the mitigation efforts designed to combat it have left deep scars on established business ideas. The effects on this short list of popular Robinhood investments have been mixed.

• Ford reopened its closed factories over the summer and launched several promising models that are expected to sell well in 2021. The company’s strategy for electric vehicles remains unclear but the idea of ​​running its own car website opportunity could be a winner.
• GE’s multi-year turnaround story continued with an increased focus on the health and renewable energy businesses. The lack of a sharp rebound in air travel has put pressure on General Electrics’ aviation business, leading to yet another round of job cuts in the jet engine industry.
• Disney has reopened its theme parks but drew small crowds amid strict social distancing rules. The movie industry is still effectively closed, forcing the House of Mouse to rethink its entire film business and move many premieres from the big screen to streaming services.
• Delta and American Airlines continue to face dramatic declines in ticket sales and travel plans. Delta’s third-quarter sales fell 79% year-over-year and American revenue fell 73% for the same period. The Center for Disease Control has recommended Americans cancel their Thanksgiving travel plans due to the surge in coronavirus infections. These negative trends did not stop airline stocks from a dramatic take-off in November, with three separate vaccine trials yielding promising results.

Real market results

Let’s say you invested $ 10,000 in each of these popular Robinhood stocks six months ago. Here is how these positions would have developed so far:

F data by YCharts.

All of these stocks beat the market in general. the S&P 500 The index rose 19.9% ​​over the same period, just below Walt Disney’s 21.5% gain at the bottom of this list. The initial investment of $ 50,000 has risen to $ 69,900 today, which equates to an average gain of 40%.

Time will tell how these investments can perform in the long run, but Robinhood’s most popular turnaround ideas in late spring have paid off in the first six months.

I would hesitate to buy most of these stocks today, given that the recent surge in COVID-19 cases could lead to a second round of widespread lockdowns across the country and around the world. At the same time, I’m keeping a close eye on high-quality companies like Walt Disney and Ford, ready to pounce if lockdowns come and take their stock prices down again. In particular, I see Disney repositioning itself as a budding leader in video streaming platforms. I would love to buy more Disney stock on the cheap, even at the cost of long term problems in the theme parks and resorts division of the company.