KODK - 2 Risky Robinhood Stocks to Sell Right Now
The Robinhood stock-trading service is a great resource for novice investors because of its low fees and user-friendly mobile app. But if you are new to the stock market, it can be hard to tell the good companies from the bad ones. That can lead to novice investors easily falling victim to money-burning stocks that will blow up their portfolio.
One way novice investors look for good stock investing bets is to see what stocks are the most popular and Robinhood helps in that effort by providing lists of the most widely held stocks among its users. There are plenty of good companies on that list and a few that are not so good (and not much to differentiate them within the app).
Here are two extremely risky stocks that are very popular on Robinhood. The first stock is Eastman Kodak (NYSE: KODK), a once-bankrupt film company trying to pivot toward pharmaceuticals production. And the second stock is AMC Entertainment (NYSE: AMC), a movie theater operator that might not survive the coronavirus pandemic because of its troublesome business model. Let's go over what exactly makes these companies terrible investments.