EBS - 3 Biotech Stocks Robinhood Investors Love and 1 They Should
It's become conventional wisdom on Wall Street that the Robinhood trading platform is a playground for young, inexperienced day traders chasing the quick buck -- so-called "dumb money" following the latest trend. Well, maybe experienced investors shouldn't be so quick to judge.
A report by Goldman Sachs found that Robinhood investors, while indeed tending toward a younger age demographic, beat the pants off the typical hedge fund in the second quarter. While anything can happen in a single quarter, there's no reason to think that investors on this platform, looking at the same information as everybody else, aren't going to come up with some long-term winners along the way. It's not as if the Wall Street establishment doesn't succumb to group think itself; it just believes its group is smarter.
Biotech stocks can be particularly tricky to understand. Robinhood investors have been putting money into several biotechs that are involved in the race for a COVID-19 vaccine, but there are three stocks they're buying that are going after other markets. Here's the rundown on these and a suggestion for another that should be on the list.