CNBC’s Jim Cramer on Tuesday gave his thoughts on the most sought-after stocks by younger investors on the popular stock trading app Robinhood.
The investing platform’s co-CEO Ivan Tenev in a “Mad Money” interview the day prior revealed the top stocks that investors bought through the start-up brokerage app in March. The show host gave his stamp of approval on the stock picks, calling them “pretty intriguing stocks.”
It’s a “fantastic list,” Cramer said. “Not perfect, but very good for speculation.”
Robinhood, while used by investors across generations, is used in large part by millennials to trade stocks and cryptocurrency. The company managed to sign up 10 million active users within five years of being open to the general public.
Below are Cramer’s comments on young investors’ top 10 stock picks on Robinhood for March:
Inovio Pharmaceuticals: “I always tell you to own at least one speculative stock, and the younger you are, the more speculative you can be.”
Ford: “I have to believe this is all about bargain hunters taking advantage of a stock that’s down close to 50% for the year, and they like these $5 stocks. I think that’s a mistake,” Cramer said, adding, “the stock might be worthless if the company runs out of money.”
Disney: “I think this one’s brilliant,” Cramer said. A good buy if you’ve got a long time horizon, and Robinhood’s younger clientele [has] decades.”
Microsoft: Cramer called it “the best performing large-cap tech.”
American Airlines: “This is another one where I get the temptation. The stock’s down close to 70% from its highs. It’s a big bounce back candidate if the government bails out the industry—and we always bail out the air industry.”
Boeing: “You have to believe it will be saved by Uncle Sam,” Cramer said. “I think it’s a 50 down, 100 up situation. Perfect risk reward for a younger investor.”
Carnival: “I wouldn’t own Carnival if you’re my age, no, but if you’re thirty it might be worth it for speculation.”
General Electric: “GE has a fabulous CEO, Larry Culp, and I think it’s a better play on the eventual rebound in air travel than Boeing.”
Tesla: “I’m surprised it’s number ten and not number two or three. If you’re a younger investor, it makes a ton of sense to bet on the only car company that’s so popular it doesn’t need to advertise.”
Disclosure: Cramer’s charitable trust owns shares of General Electric.