3 Popular Robinhood Stocks That May Go Bankrupt

A wild year of volatility for equities has brought investors of all sorts out of the woodwork. Although the ferocity of the first-quarter decline was a bit unnerving for all, it provided one heck of an opportunity for long-term investors to put their money to work in high-quality businesses.

The same can’t be said for short-term traders, or those chasing whatever happens to be this week’s or month’s hot stock on Wall Street. A quick glance at the investment activity by members of online investing app Robinhood confirms that some awful companies are being purchased.

Robinhood has been particularly successful at courting young and/or novice investors; the average age of its members is 31. Don’t get me wrong — it’s fantastic to see young people starting early and putting their money to work in the stock market. However, Robinhood is failing to provide the tools or education necessary for these newbies to succeed. As a result, the company’s leaderboard (i.e., the 100 most-held stocks on the platform) is a mishmash of bad businesses.

Three of these top Robinhood stocks may go bankrupt within the next couple of years.

A judge's gavel next to a petition to file for bankruptcy.

Image source: Getty Images.


As of today, fuel cell electric vehicle (EV) manufacturer Nikola (NASDAQ:NKLA) has an abundance of cash. It ended its first quarter as a public company (following its reverse merger) with $698.4 million in cash and cash equivalents, and appears to be closing in on a $2 billion equity investment from industry titan General Motors (NYSE:GM) as of Tuesday, Sept. 29. This deal would undoubtedly give Nikola plenty of financial flexibility to execute its vision of mass-producing the Badger EV fuel cell truck by as soon as next year. 

But just because Nikola has plenty of cash now doesn’t mean the company’s vision will translate to success. Nikola