Robinhood is one of the most popular trading platforms in the United States. It is used primarily by millennial and Gen Z traders. The company’s signature “zero commission trading” has made it a big hit, and one of the biggest trading platforms in the country. Robinhood had 13 million registered users in 2020. Furthermore, 9.5 million users traded cryptocurrency through Robinhood in the first quarter of 2021, representing a 6x rise sequentially.
Robinhood plans to go public in July. And according to Bloomberg Intelligence analyst David Ritter, Robinhood could be worth as much as $40 billion in an IPO, if approved.
Despite controversy regarding temporary regulatory restrictions on Gamestop, Inc. (GME) shares during a short squeeze earlier this year, Robinhood remains one of the most popular trading platforms among the youth. With rising interest in clean energy and cryptocurrencies among the younger generation, Wall Street analysts expect popular Robinhood stocks NIO Inc. (NIO), Coinbase Global, Inc. (COIN), and Plug Power Inc. (PLUG), which are ranked in the top 35 in the Robinhood top 100 list, to rally by more than 40% in the near term.
NIO Inc. (NIO)
Based in China, NIO is a manufacturer and seller of smart electric vehicles with innovations such as autonomous driving and artificial intelligence. The company sells its products primarily in Mainland China, Hong Kong, the United States, the United Kingdom, and Germany. It also provides energy and service packages to its customers. NIO is ranked #15 in the Robinhood top 100 stocks.
NIO delivered 6,711 vehicles in May, representing an impressive 95.3% year-over-year increase. The company expects a big acceleration in the production in this month to make up for production delays in May. It expects to deliver 20,000 - 22,000 vehicles in the second quarter.
In late May, NIO entered a long-term manufacturing agreement with Jianghuai Automobile Group Co., Ltd., and Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd. Under the agreement, which is valid through May 2024, NIO’s vehicle production should increase by 240,000 units annually.
For the fiscal first quarter, ended March 31, NIO’s revenues stood at RMB7.98 billion ($1.22 billion), representing a 481.8% increase year-over-year. NIO’s net sales increased 489.8% year-over-year to RMB7.41 billion ($1.13 billion).And its gross profit grew 1,028.2% from the year-ago value to RMB1.55 billion ($237.3 million).
The Street expects NIO’s revenues to rise 136.2% year-over-year to $1.30 billion in the current quarter, ending June 2021. The consensus EPS estimate for the current quarter indicates a 38.9% improvement year-over-year. Also, NIO surpassed the Street’s EPS estimates in two of the trailing four quarters. NIO has gained 552.1% over the past year, and 17.9% in the past month.
All the eight Wall Street analysts that rated NIO have rated it Buy. The stock’s $61.91 median price target indicates a potential 44.9% upside from its last closing price of $42.74. The stock’s 12-month price target ranges from a low of $50.00 to a high of $81.00.
Click here to checkout our Electric Vehicle Industry Report for 2021
Plug Power Inc. (PLUG)
PLUG has innovated and commercialized the hydrogen and fuel cell technology concept. The company supplies hydrogen turnkey solutions across North American and European countries to power electric industrial vehicles. GenKey, GenDrive, GenFuel, GenCare and ReliOn are some of its well innovative product offerings. PLUG is ranked #18 in the Robinhood list of top 100 stocks.
On June 3, PLUG and Renault Group launched a joint venture HYVIA with the goal of manufacturing hydrogen fuel powered vehicles. The joint venture should allow PLUG to strengthen its position as an EV parts supplier, giving PLUG a new definition and stance in the market. The joint initiative also targets a “30% market share in hydrogen powered light commercial vehicles in Europe by 2030”, HYVIA’s CEO said.
On April 29, PLUG collaborated with BAE Systems to supply zero-emissions powertrains to heavy-duty transit bus OEMs in North America. This collaboration should allow the company to expand its on-road applications strategy to meet its long-term growth and production targets.
Also in April, PLUG was invited to submit a Part II Application for a $520 million loan guarantee under the U.S. Department of Energy (DOE). Securing this loan should allow the company to deploy a 500-ton green hydrogen network by 2025.
In the first quarter, ended March 31, PLUG revenues came in at negative $316.30 million, owing to $456 million in costs such as non-cash charges and vesting of its customers’ warrants. However, revenue from its power purchase agreements increased 4.9% year-over-year to $7.07 million. Its gross billings stood at record high $96.30 million. And its cash and cash equivalents balance rose 342.3% from the prior year quarter to $1.63 billion over this period.
A $469.48 million consensus revenue estimate million for the current year indicates a 39.30% increase year-over-year. The Street expects the company’s EPS to improve 84.2% in the current year versus the prior year. Shares of PLUG have gained 557.3% over the past year, and 45.3% over the past six months.
Of the 16 Wall Street analysts that rated PLUG, 10 rated it Buy, while five rated it Hold and one rated it Sell. Its $48.07 median price target indicates a potential 48.2% upside from its last closing price of $32.43. Its 12-month price target ranges from a low of $24 to a high of $78.
Coinbase Global, Inc. (COIN)
COIN offers a trusted and easy-to-use platform for cryptocurrency trading. The company provides a fair, accessible, efficient, and transparent financial system for the trading of bitcoins and other popular cryptocurrencies. It had more than 56 million registered users as of March 31. The company’s assets listed on the platform stand at $223 billion as of March 31. COIN is ranked #33 in the Robinhood top 100 stocks list.
On May 20, COIN issued $1.25 billion of convertible senior notes. It plans to strengthen its balance sheet with the proceeds.
COIN made its stock market debut on April 14 through a direct listing on Nasdaq. The stock opened at $381, 52.4% higher than its $250 reference point. Also, the stock gained 12.7% from its opening price to hit its $429.54 all-time high in its first trading session.
COIN’ revenues increased 844.8% year-over-year to $1.8 billion in the fiscal first quarter, ended March 31. Its operating profit grew 2,447.3% from the year-ago value to $987.71 million. COIN’s net income came in at $771.46 million, indicating a 2,312.9% rise year-over-year. Its cash and cash equivalents balance rose 271% from the prior year quarter to $8.31 billion over this period.
Analysts expect COIN’s revenues to rise 395.2% year-over-year to $6.33 billion in 2021.
Of the 15 Wall Street analysts that rated COIN, 10 rated it Buy while four rated it Hold and one rated it Sell. The $388.86 median price target indicates a potential 73.4% upside from its last closing price of $224.32. The 12-month price target ranges from a low of $225 to a high of $650.
NIO shares were trading at $42.54 per share on Thursday afternoon, down $0.20 (-0.47%). Year-to-date, NIO has declined -12.72%, versus a 13.75% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
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