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The commission-free trading app Robinhood offers a good heatmap of where retail investors are putting their money on any given day. And while some popular stocks among those using the service are considered questionable investments by veteran stock traders, others have real potential to deliver explosive returns.
Two stocks that fit into that latter category are Virgin Galactic (NYSE:SPCE) and MGM Resorts (NYSE:MGM). Let’s explore the reasons why these two stocks could skyrocket.
1. Virgin Galactic: to infinity and beyond?
Virgin Galactic is a fledgling space tourism company that appeals to Robinhood investors because of its high-stakes business model and all-or-nothing catalyst for growth. Either the company successfully sends passengers to space, or it doesn’t. But despite the risks, Virgin Galactic looks poised for success because of its strong balance sheet and convincing progress toward getting its spaceplanes ready for commercial operation.
Image source: Getty Images.
As of the second quarter of 2020, Virgin Galactic has completed 27 of 29 elements required for it to receive Federal Aviation Administration (FAA) clearance to fly paying customers. The company plans to complete the remaining milestones by the first quarter of 2021 before sending founder Richard Branson to space on its inaugural fully approved flight. Paying …
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