Over the past year, retail investors have made their presence known on Wall Street. In particular, they’ve flocked to popular online investing app Robinhood. We know this, because Robinhood gained approximately 3 million new users in 2020, yet the average age of its user base is only 31.
While it’s great to see young investors putting their money to work in a proven wealth creator (the stock market), the lack of experience for these millennial and/or novice investors is clearly visible on Robinhood’s leaderboard, which details the 100 most-held stocks on the platform. Quite a few of Robinhood investors’ most-held stocks are momentum plays or penny stocks that lack true substance — and this isn’t a fact that’s lost on Wall Street.