Stocks traded on the Robinhood (NASDAQ:HOOD) platform are considered the most popular, especially among Gen Z and millennial investors. In addition to popularity, HOOD stocks Microsoft (MSFT) and Walmart (NYSE:WMT) possess solid fundamentals. So, these stocks could be solid bets now. In contrast, despite being placed on the HOOD’s list of most popular stocks, Snap (SNAP) and Peloton Interactive (NASDAQ:PTON) look significantly overvalued at their current price levels. So, we think they are best avoided now. Read on. Robinhood Markets , Inc. (HOOD) introduced zero-commission trading with no account minimums in 2013, forcing many other brokerage firms to later offer such benefits to compete. Last year saw a surge in first-time HOOD platform users, pushing the platform to the forefront again. HOOD’s platform also witnessed significant meme stock trading this year.
However, according to JPMorgan Chase & Co. (NYSE:JPM) analysts, HOOD’s active-users metrics and app downloads plunged during the third quarter. And despite lacking solid fundamentals, many popular stocks on the platform have soared in price solely based on social-media hype surrounding them.
Given this backdrop, we think it could be wise to scoop up HOOD stocks Microsoft Corporation (NASDAQ:MSFT) and Walmart Inc. (WMT), which are popular among the platform’s users and possess strong fundamentals. Conversely, HOOD stocks Snap Inc . (NYSE:SNAP) and Peloton Interactive, Inc. (PTON) are best avoided because they look significantly overvalued at their current price levels.