In this article, we will discuss the 12 Best Robinhood Stocks to Buy Under $20.
Stocks priced under $20 have become an attractive option for investors looking to tap into growth without paying the high premiums of blue-chip stocks. These companies often operate in innovative sectors—like quantum computing, autonomous delivery, and clean energy—where technological advancements could lead to significant returns. However, these stocks also come with risks, such as volatility and speculative trading, making it important to separate hype from long-term potential.
Retail trading platforms like Robinhood have made these stocks more accessible, allowing retail investors to drive market movements. In 2023, retail trading accounted for 23% of U.S. equity volumes, according to JPMorgan. This shift has altered the landscape of stock investing, with retail investors now playing a significant role in driving the prices of low-priced stocks. Robinhood, with its commission-free structure and easy-to-use app, has attracted millions of new investors eager to participate in the stock market, often gravitating toward the affordability of stocks under $20.
Low-priced stocks are appealing for a few key reasons. The affordability of these stocks means that investors can diversify their portfolios more easily, mitigating risk by spreading investments across various companies or sectors. For new or retail investors, low-priced stocks can provide an accessible entry point into the market. With a smaller initial investment, it’s easier to dip your toes into stock investing without committing large amounts of capital.
Low-priced stocks often represent companies in the early stages of growth or in industries that are still developing. These stocks may have greater potential for significant price appreciation, particularly if the company experiences a breakthrough. Investors who get in early can sometimes ride the wave of exponential growth. For example, in 2010, Tesla’s IPO price was $17 per share, and for several years, it traded below $20. By 2021, however, the company’s stock price surged to over $1,000 per share, reflecting the company’s transition from an early-stage electric vehicle startup to a global leader in the industry.
However, these stocks also come with risks, such as volatility and speculative trading, making it important to separate hype from long-term potential. According to Saxo Bank, small-cap stocks—often found in the under-$20 price range—tend to be more sensitive to market fluctuations and economic shifts, which can lead to higher volatility and greater price swings. Given this, we will take a look at some of the best Robinhood stocks under $20.
Photo by Annie Spratt on Unsplash
Our Methodology
For this list, we analyzed stocks that are frequently traded and popular among Robinhood users, focusing on those that are trading under $20. We started by gathering data from multiple trusted financial sources, including popular stock websites and financial news platforms, to identify Robinhood stocks under $20 that are consistently favored by retail investors. Next, we cross-referenced these stocks with Insider Monkey’s Q3 2024 hedge fund database to identify which companies had significant institutional backing. The stocks were then ranked according to the number of hedge fund investors holding positions in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
12. Serve Robotics Inc. (NASDAQ:SERV)
Number of Hedge Fund Holders: 5
Serve Robotics Inc. (NASDAQ:SERV) is pioneering the future of last-mile delivery with its autonomous all-electric robots, designed to make deliveries more sustainable and cost-effective. The company operates a fleet of over 100 robots that provide real-time status updates and respond to delivery requests via digital platforms.
Serve Robotics Inc. (NASDAQ:SERV) is set to deploy 2,000 autonomous delivery robots in 2025 through its Uber Eats partnership, targeting cities like Los Angeles and Dallas, with a projected annual revenue run rate of $60–80 million. The company has strengthened its position with strategic partnerships, including Shake Shack and Magna International, and the mass production of its third-generation robots. These robots feature enhanced cargo capacity, longer battery life, and advanced navigation powered by NVIDIA and Ouster technology. This positions Serve Robotics Inc. (NASDAQ:SERV) for continued growth in the autonomous delivery market.
Serve Robotics Inc. (NASDAQ:SERV) reported Q3 2024 revenue of $0.22 million, with $0.04 million coming from a software services agreement with Magna. The company showed strong operational growth, with a 108% year-over-year increase in daily supply hours and a 97% rise in daily active robots. It completed a $32.3 million capital raise, bringing its cash balance to $50.9 million at the end of the quarter, positioning the company for further expansion.
Michael Latimore of Northland Capital Markets maintains a Buy rating on Serve Robotics Inc. (NASDAQ:SERV) with a target price increase from $16 to $23.
11. Rigetti Computing Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 7
Rigetti Computing Inc. (NASDAQ:RGTI) is a leading full-stack quantum computing company that operates quantum computers over the cloud, offering Quantum Computing as a Service (QCaaS) to global enterprise, government, and research clients. The company also sells custom computing components and offers development contracts to further advance the quantum computing ecosystem.
Rigetti Computing Inc. (NASDAQ:RGTI) recently made a breakthrough in optical readout of superconducting qubits, published in Nature Physics. This innovation reduces thermal load and space requirements for scalable quantum systems. The company also plans to launch 36 and 108 qubit systems in 2025, aiming for 40% revenue growth by improving scalability and reducing error rates. With integrations into Amazon Braket and Microsoft Azure, these advancements strengthen the company’s competitive position and could attract new partnerships and investor interest.
In Q3 2024, Rigetti Computing Inc. (NASDAQ:RGTI) reported a net loss of $14.8 million, an improvement from the $22.2 million loss in Q3 2023. Revenue decreased to $2.4 million, down from $3.1 million in the same quarter last year. Operating expenses were $18.6 million, a slight decrease from $19.1 million in Q3 2023. The company ended the quarter with $92.6 million in cash and equivalents, providing a solid financial cushion for its ongoing development of quantum systems. The stock is up 598.82% over the last year.
10. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 10
Plug Power Inc. (NASDAQ:PLUG) is a leading provider of a comprehensive green hydrogen ecosystem, offering solutions across the entire hydrogen value chain—from production and storage to delivery and energy generation. The company develops and supplies hydrogen and fuel cell products, including electrolyzers that enable customers to generate hydrogen on-site for industries such as chemicals, steel, and refining.
Plug Power Inc. (NASDAQ:PLUG) secured a $1.66 billion loan guarantee from the U.S. Department of Energy to build up to six clean hydrogen production facilities. The project aims to reduce greenhouse gas emissions by 84% compared to traditional methods. It will also create 100-200 construction jobs and 50 full-time jobs per site. Additionally, updated rules under the Inflation Reduction Act (IRA) provide greater flexibility for green hydrogen producers, enhancing the company’s growth prospects and supporting its leadership in the clean hydrogen market.
Plug Power Inc. (NASDAQ:PLUG) reported solid progress in Q3 2024, with revenue reaching $173.7 million, driven by a 285% quarter-over-quarter increase in electrolyzer sales. The company posted a net loss of $211.2 million, an improvement from the previous quarter’s $262.3 million loss, reflecting continued investment in growth and new product deployments. Operating cash flows improved by 31% QoQ, supported by better margin performance and efficient use of inventory.
10 hedge funds within the Insider Monkeys Q3 2024 hedge fund database held a position in the company.
9. SoundHound AI Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
SoundHound AI Inc. (NASDAQ:SOUN) specializes in conversational intelligence, offering cutting-edge voice AI solutions that enable businesses to create natural, human-like interactions with their customers. Their technology powers a wide range of applications, allowing users to engage seamlessly with devices like mobile phones, cars, TVs, and IoT products.
SoundHound AI Inc. (NASDAQ:SOUN) unveiled its first-ever in-vehicle voice commerce platform at CES 2025, allowing drivers and passengers to order food directly from their car’s infotainment system. The platform integrates with national restaurant chains and enables seamless payments and navigation to pick-up locations, all hands-free. This innovation positions the company as a leader in voice AI for automotive applications and could open new revenue streams.
SoundHound AI Inc. (NASDAQ:SOUN) reported a record-breaking third-quarter revenue of $25.1 million, marking an 89% year-over-year increase. The company also showed improved customer concentration, with only 12% of revenue coming from its largest customer, a significant drop from 72% last year. Despite the growth, the company posted a GAAP net loss of $21.8 million and a non-GAAP net loss of $15.0 million. Operating expenses grew significantly, with GAAP operating loss expanding by 132% to $33.8 million. SoundHound AI Inc. (NASDAQ:SOUN) ended the quarter with $136 million in cash, reflecting solid liquidity.
On January 13, 2025, Scott Buck of HC Wainwright & Co. reiterated a Strong Buy rating for SoundHound AI Inc. (NASDAQ:SOUN), setting a price target of $26, which implies a potential upside of 137.12% from its current price.
8. GoPro Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 13
GoPro Inc. (NASDAQ:GPRO) is a leading producer of cameras and accessories designed for mountable and wearable use. In addition to cameras, the company provides a subscription service with access to powerful video and photo editing tools, along with a suite of mobile, desktop, and web applications for seamless content creation and sharing.
GoPro Inc. (NASDAQ:GPRO) continued its research into next-generation camera technology. In January and February 2025, the company was granted several patents related to camera sensor technology and lens stabilization that could offer even more compact designs and improved image quality in future products. GoPro (NASDAQ:GPRO) has joined forces with MotoGP and the FIM Motocross World Championship (MXGP) to deliver even more immersive, rider-first racing content.
GoPro (NASDAQ:GPRO) reported a challenging Q4 2024, with revenue declining 32% year-over-year to $201 million. This was primarily driven by a 16% drop in camera unit sell-through (775,000 units). Despite this, subscription and service revenue rose 9%, totaling $27 million, bolstered by an 8% increase in average revenue per user and a slight 1% growth in subscribers to 2.52 million. Its focus on expanding subscription services and maintaining premium-priced camera sales (84% of revenue from cameras priced above $400) could provide some stability going forward.
7. AMC Entertainment Holdings Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 16
AMC Entertainment Holdings Inc. (NYSE:AMC) is a leading global movie exhibition company with a strong presence in both the U.S. and international markets. The company offers a diverse range of food and beverage options, from traditional concessions to premium cocktails and dine-in theatre experiences.
AMC Entertainment Holdings Inc. (NYSE:AMC) company unveiled its “Go Plan” in late 2024, a multi-year investment strategy worth up to $1.5 billion, focusing on theater upgrades such as advanced laser projection, premium large-format screens, and enhanced seating. AMC Entertainment Holdings Inc. (NYSE:AMC) also posted record attendance during the Thanksgiving holiday, surpassing previous highs in admissions and revenue. In a move to solidify leadership, the company appointed Nikkole Denson-Randolph as Chief Content Officer in January 2025.
AMC Entertainment Holdings Inc. (NYSE:AMC) reported mixed results for Q3 2024, with total revenues reaching $1.35 billion, down 4.1% from the previous year. The company posted a net loss of $20.7 million. Despite these challenges, it showed improvement in key metrics, including a 31% increase in total revenues compared to Q2 2024, and narrowed its net loss by 37%.
16 hedge funds within Insider Monkey’s Q3 2024 hedge fund database held a position in the company.
6. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 16
GameStop Corp. (NYSE:GME) is a leading retailer specializing in video games, entertainment products, and technology, with a global presence spanning the United States, Canada, Australia, and Europe. Operating under well-known brands like GameStop, EB Games, and Micromania, the company boasts over 4,000 stores worldwide.
GameStop Corp. (NYSE:GME) has been making notable strategic moves in early 2025, signaling adaptive changes. The company has been exploring cryptocurrency investments, which could diversify its portfolio and align with emerging market trends, potentially strengthening its financial standing. Additionally, the company announced the closure of select stores in Michigan, including locations in Midland Mall and Bay City Mall. This is part of a broader effort to optimize its retail footprint and adjust to the shifting landscape of consumer behavior.
GameStop Corp. (NYSE:GME) reported third-quarter 2024 results showing a mixed performance. Net sales fell to $860 million from $1.078 billion in the same quarter last year, reflecting a 20% year-over-year decline. However, the company managed to reduce its selling, general, and administrative expenses by 4.9%, from $296.5 million to $282 million. Its cash position remained strong at $4.6 billion, bolstered by a successful equity offering that raised approximately $400 million.
5. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is a holding company specializing in the research, development, and manufacturing of premium smart electric vehicles. The company designs, develops, and sells high-end electric vehicles. It is also at the forefront of developing cutting-edge technologies like battery swapping, autonomous driving, and its NAD (NIO Autonomous Driving) system.
NIO Inc. (NYSE:NIO) has been making significant strides in its product and market expansion during late 2024 and early 2025. In December 2024, the company set a new monthly record by delivering 31,138 vehicles, representing a 72.9% increase year-over-year, while January 2025 saw 13,863 deliveries, up 37.9% from the previous year.
For Q3 2024, NIO Inc. (NYSE:NIO) had a mixed financial performance. Vehicle sales totaled $2.38 billion, a 4.1% decline from Q3 2023, while gross profit rose 31.8% to $286 million. The company incurred a net loss of $721 million, an 11.0% increase compared to last year. Operating expenses also rose, with R&D costs up 9.2% to $473 million. However, the company remains in a strong liquidity position, with cash and equivalents totaling $6 billion, providing a solid buffer for ongoing investment and future expansion despite the profitability challenges.
A major highlight in the company’s product strategy was the introduction of the NIO ET9, a smart electric executive sedan, which is expected to start deliveries in March 2025. Additionally, NIO Inc. (NYSE:NIO) expanded its global footprint by unveiling its Firefly brand, aiming to capture the European market with small, premium electric vehicles, with the first model expected to launch in mid-2025.
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 36
Ford Motor Company (NYSE:F) is a renowned automobile manufacturer that produces a wide range of vehicles, including trucks, SUVs, commercial vans, cars, and luxury Lincoln vehicles. The company operates through four key segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit. Ford Blue focuses on internal combustion engines and hybrid vehicles, while Ford Model e is dedicated to electric vehicles and related services. Meanwhile, Ford Pro serves commercial and government customers and Ford Credit provides vehicle-related financing and leasing solutions.
Ford Motor Company (NYSE:F) is navigating a series of challenges that could impact its future growth prospects. CEO Jim Farley has voiced concerns over the potential economic disruption stemming from President Trump’s proposal to repeal tax credits under the Inflation Reduction Act. He warns that it could lead to significant job losses within the automotive sector. Adding to the uncertainty, new tariffs on aluminum and steel are increasing costs, further pressuring the industry. In an effort to position itself for long-term success, Ford Motor Company (NYSE:F) implemented key leadership changes on Feb 05, 2025, as part of its Ford+ strategy, which seeks to transform the company into a more dynamic player in products, services, and software.
On the financial side, Ford Motor Company (NYSE:F) delivered strong full-year results in 2024, reflecting the success of its Ford+ growth strategy. The company achieved a record revenue of $185 billion, marking its fourth consecutive year of growth. This was supported by increased market share in non-traditional segments like hybrid trucks, with the company maintaining its position as America’s #1 ICE brand and #2 EV brand. Ford Motor Company (NYSE:F) also delivered an impressive free cash flow of $6.7 billion, surpassing its target range of 50-60% with a cash conversion rate of 65%.
36 hedge funds within the Insider Monkey Q3 2024 database held a position in the company.
3. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 41
American Airlines Group Inc. (NASDAQ:AAL) is a leading holding company primarily engaged in operating a vast network of air transportation services. Through its regional subsidiaries and third-party regional carriers, the company operates under the American Eagle brand, offering scheduled flights for passengers and cargo. Its extensive network spans major U.S. hubs and international gateways, including cities like London, Sydney, and Tokyo.
American Airlines Group Inc. (NASDAQ:AAL) faced a $50 million fine from the U.S. Department of Transportation due to inadequate wheelchair assistance. It has since committed to improving these services with a $175 million investment. In a significant move to bolster its loyalty program, the company secured a 10-year exclusive co-branded credit card agreement with Citi, set to begin in 2026. It is expected to boost revenue and solidify its standing in the competitive loyalty space.
American Airlines Group Inc. (NASDAQ:AAL) delivered strong full-year results for 2024, reporting record revenue of $54.2 billion, up from $53 billion in 2023. Operating cash flow reached $4 billion, while free cash flow hit a record $2.2 billion. The company also reduced its debt by $15 billion, exceeding its goal a year ahead of schedule. Despite operational challenges, including extreme weather, the airline showed resilience, ranking second in completion factor and on-time departures among U.S. carriers.
Andrew Didora of BofA Securities upgraded the stock from “Sell” to “Hold,” raising the price target from $12 to $20, reflecting a potential upside of +25.23%
2. KeyCorp (NYSE:KEY)
Number of Hedge Fund Holders: 41
KeyCorp (NYSE:KEY) is a leading regional bank offering a range of financial services, including retail banking, commercial banking, and investment management. Through its principal subsidiary, KeyBank, the company serves individuals, small businesses, and corporations across the U.S.
KeyCorp (NYSE:KEY) has recently undertaken several strategic initiatives to enhance its operations and community engagement. In December 2024, the company announced a significant partnership with The Bank of Nova Scotia, with Scotiabank investing approximately $2.0 billion to acquire a 14.9% stake in KeyCorp (NYSE:KEY). This collaboration aims to leverage both institutions’ strengths in North America, focusing on payments, wealth management, and investment banking.
In January 2025, KeyCorp (NYSE:KEY) appointed Mohit Ramani as its new Chief Risk Officer. Ramani brings extensive experience from his previous roles at Truist Financial, Goldman Sachs, and Bank of America. He will lead the company’s risk management team, reporting directly to Chairman and CEO Chris Gorman.
KeyCorp (NYSE:KEY) reported a challenging fourth quarter of 2024, posting a net loss of $279 million. However, adjusted net income was stronger at $378 million, reflecting solid performance in its core businesses. Revenues for the quarter reached $865 million, a 16% increase year-over-year when adjusted for selected items, and net interest income grew by 10% compared to the previous quarter.
Currently, 41 hedge funds in the Insider Monkey Q3 2024 database held positions in the company.
1. Warner Bros. Discovery Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 49
Warner Bros. Discovery Inc. (NASDAQ:WBD) is a global entertainment and media company that emerged from the merger of WarnerMedia and Discovery, Inc. in April 2022. The company offers a broad range of content across multiple platforms, including television, film, and streaming services.
Warner Bros. Discovery Inc. (NASDAQ:WBD) has recently undertaken several strategic initiatives to enhance its position in the entertainment industry. In December 2024, the company announced a significant corporate restructuring, dividing its operations into two primary divisions: “Global Linear Networks” and “Streaming & Studios.” This reorganization aims to improve strategic flexibility and create potential opportunities for future growth. In the streaming sector, the company is developing a “Game of Thrones” movie, capitalizing on the franchise’s extensive fan base to bolster its content offerings.
Warner Bros. Discovery Inc. (NASDAQ:WBD) reported a challenging Q3, with total revenues of $9.6 billion, reflecting a 3% decline when adjusted for currency effects compared to the same quarter last year. Net income was modest at $0.1 billion, impacted by significant acquisition-related expenses and restructuring charges. However, Discovery’s direct-to-consumer (DTC) business showed strong growth, with 110.5 million global subscribers, marking its largest quarterly increase since the launch of Max.
Warner Bros. Discovery Inc. (NASDAQ:WBD) ranks first on our list of the 12 Best Robinhood Stocks to Buy Under $20. While we acknowledge the potential for WBD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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