STOCKS TELEGRAPH

Author: Abdul Rehman

  • Stash vs Acorns vs Robinhood. Which One Is Better?

    Stash vs Acorns vs Robinhood. Which One Is Better?

    Stash vs Acorns vs Robinhood. The digital revolution has changed things around. We have to know the online brokerage firms to create accounts to manage our equity portfolio. Especially for a new geek in the market. The virtual brokerage offers online and mobile account management, which is relatively easy to handle and get used to.

    The most popular and well-designed brokerage firms such as Robinhood, Acorns, and Stash make it easy for anyone to access the market. They do not require a high amount of capital in hand and experience. With little investments, you can begin your career as an investor from these investment firms and explore the market. 

    So, let’s dip a bit deeper and see which one comes up on top; Stash vs Acorns vs Robinhood. 

    "Acorns%20is%20serious%20about%20security,an%20account%20and%20use%20Acorns.&text=Securities%20in%20your%20Acorns%20Invest,are%20protected%20up%20to%20%24500%2C000.it’s very serious about security. The trading platform has taken every possible step to ensure proper check and balance. Acorns use SSL encryption for the website and application to keep it secure with 256-bit encryption. This means that users’ personal and financial data is accelerable only to the user itself and Acorns. 

    Moreover, Acorns provides account alerts to the users when it detects any unusual and abnormal activity. It also has bank-level security with multiple layers to protect your information which includes secure servers.

    For instance, for the users of SPIC Protected Investment Accounts, the securities in the user’s Acorns Invest and Later accounts are protected up to $500,000. 

    For example, you can buy zoom stock and NIO stock with the help of these 3 platforms.

    Stash

    Stash is an investment app just like Acorns, but it has its significance. Stash targets beginners to initiate their investing and trading career with ease of mind. The service has a zero account minimum to open a personal portfolio (Stash also has retirement and custodial portfolios) and charges $1 to $9 a month, depending on account types. 

    Users can the option of hand-holding while they build a portfolio of stocks and ETFs. Stash supports a wide range of accounts to diversify user’s investment portfolios, including taxable brokerage accounts, retirement accounts, and custodial accounts. 

    How does Stash work?

    Stash has a working system quite similar to Acorns. Every time customers spend, Stash will round-up the purchases to the nearest dollar. For instance, whenever the round-up total reaches $5, Stash will transfer the spare change to the customer’s investment account. 

    Stash also offers its users a cashback opportunity on everyday purchases to earn up to 10% cashback. 

    Is Stash legitimate?

    Stash is a relatively new player in the financial service market compared to Robinhood vs Acorn. Stash offers brokerage services to its users, excluding investments that the FDIC federally insures.

    This somehow causes a risk of losing principal as with any other brokerage. Stash provides its users with Apex Clearing Corporation, an SEC-registered broker-dealer and member FINRA/SIPC.

     So, what Stash does is noted by the Securities Exchange Commission (SEC), as it’s registered with the SEC. The brokerage firm also has the Securities Investor Protection Corporation (SIPC) and Financial Industry Regulatory Authority (FINRA). This makes Stash all legitimate to go with.

    robinhood vs acorn
    Which one is better Stash vs Acorn vs Robinhood?

    What are standard features among them?

    Although each brokerage application has its unique and distinct features, there are some standard features among them—setting aside Stash vs Acorns vs Robinhood—which make them similar.  

    1. Exchange-traded funds: All three brokerage firms allow you to invest in ETFs.
    2. Taxable accounts: All three offer taxable investing accounts.
    3. No minimum investment: None of the three apps requires a minimum investment to open an account.
    4. Phone-friendly, web-ready: Stash, Acorns, and Robinhood apps are designed in a manner that supports both Apple or Android mobile devices but can also be accessed through your computer browser.

    How are they different from each other?

    Robinhood is the most established among Acorns and Stash. It offers a free basic account with zero trading fees. Robinhood has the broadest range of investment options that cover different areas of trading.

    This allows users to have a much-diversified platform to seek the best possible investment options, including stocks, ETFs, options, futures, and cryptocurrencies. However, it provides the least amount of guidance than Acorns and Stash.

    Acorns’ best part is that it’s fully automated, making the investor more reliable about the investing—without worrying about the complexities of the market. Acorns offers an automatic recurring investment option helping in growing your money with the hands-off method. 

    Stash is a new platform that’s much more like for beginners and provides the best opportunity to learn as you go.

    It provides complete guidance while creating your portfolio.

    Also, it gives you complete freedom to decide on your own. Users can use a unique Stock-Back debit card, which helps them earn fractional shares from participating retailers, similar to earning the cashback rewards. 

    Pros and Cons of Stash vs Acorns vs Robinhood 

    Each brokerage app has its benefits and drawbacks. It depends on what kind of investor you are and how long you have been in the market. So, let’s have a look at the pros and cons of Stash vs Acorns vs Robinhood.

    Stash Pros 

    • Educational content and support.
    • Fractional shares.
    • Values-based investment offerings.

    Stash cons

    • Intelligent Portfolios don’t offer tax-loss harvesting.
    • High ETF expense ratios.

    Acorns Pros

    • Automatically invests the spare change.
    • Cashback at select retailers.
    • Educational content available.

    Acorns cons

    • Small investment portfolio.
    • High fee on small account balances.

    Robinhood Pros

    • No account minimum.
    • Streamlined interface.
    • Cryptocurrency trading.

    Robinhood cons

    • No retirement accounts.
    • No mutual funds or bonds.
    • Limited customer support.

    Frequently asked Questions

    Here are some of the frequently asked questions about these trading platforms.

    Can you make money on Stash?

    Stash is an investment app, which means it helps you in making money. It is a tool that guides you to understand the market and have specific options for investment and get earnings and profit upon your invested money. 

    It depends on which securities you want to invest in. Stash helps you in risk management and understand the investing trends in the market. Also helps you to guide towards the investment option as per your stature and mood.

    If you aren’t in volatile investments, then you can go the low-risk route and bypass that problem with Stash.

    What about Stash vs Acorns and Stash vs Robinhood? Stash is best for new investors who want to learn. Its hybrid of self-directed and automated investing options can teach you a lot about how investing works.

    Is Betterment better than Acorns?

    Betterment is a brokerage app and an automated investing tool that has been around for more than a decade. It carries the distinction of being the first-ever Robo-advisor. 

    Betterment is more straightforward and does not offer Acorns’ automatic investment feature. Similarly, Betterment focuses more on growing more extensive portfolios and this service generally offers better ways to target your money.

    Where Acorns is best for people who don’t want to be bothered with investing. You can set it and forget it. This is hands-off investing for the long term.

    Which one is better, Stash, acorn or Robinhood?

    Each one of them has there own significance based on their services and the level of trust people put in them. Let’s check about between Stash vs Acorns, Stash vs Robinhood, and Robinhood vs acorns.

    • Stash vs Acorns: Stash is better for new investors who want to learn and gradually develop their portfolios. Where as Acorns is best for those who don’t want to give much time to invest. 
    • Stash vs Robinhood: While Robinhood is the best choice for active traders who are experienced and looking for low-cost and much variety.
    • Robinhood vs Acorns: Acorns, in comparison to Robinhood, comes first for newbies, which provides hands-off investing for the long term.

     

    Conclusion

    Investing is a very sacred practice in your financial life cycle. If you want to invest your savings, you need to be risk-averse and understand the market altogether.

    For this, you need to choose the best possible and most situated brokerage firm for you. In today’s digital world, investment platforms like Robinhood, Stash, and Acorns have become necessary for an investor. 

  • Is NIO A Good Stock To Buy?

    Is NIO A Good Stock To Buy?

    NIO (NASDAQ: NIO) has been a star performer in the market in 2020. However, recently it has fallen sharply from its recent highs. So, is NIO a good stock to buy? The future of the electric vehicle market is more evident than ever before. Nio Stock has justified and proved itself as one of the leading EV brands in the world. Should you buy Nio on the downside for the long-term? 

    Is NIO a good stock to buy?
    5 reasons to Buy NIO Stocks

    5 Reasons to buy NIO stocks 

    NIO stock has shown growth over the past year, and it has pretty excessively supported the stock price during the period. Furthermore, it has integrated into a vast automobile marketplace and has made its ecosystem of a sustainable industry which is much needed right now.

    Recently, the Chinese EV marker reported the four-square sales, which soared up to 150% year-over-year to $1.02 billion. At the same time, the vehicle margin during the quarter jumped to 17.2% from -6%. 

    So, let’s watch out for the reasons to buy NIO stock.

    • Nio’s New ET7 EV Will Likely Accelerate the Company’s Sales Growth

    The Chinese EV giant revealed its ET7 electric SUV early this year. The SUV is expected to be fully autonomous, with a milage of 620 miles on one charge. The SUV will also come up with another version that can drive up to 435 miles per charge. 

    ET7 will be one of Nio’s decorated SUVs with one ultra-long-range LiDAR unit, 11 eight-megapixel cameras on board, 12 ultrasonic sensors, five millimeter-wave radar cameras, and two positioning units. ET7 has some other prominent features and is set to help the NIO sales radar boom. The ET7, with a range of 435 miles, is expected to be sold for $78,000. 

    •  NIO stock is fundamentally undervalued.

    NIO is fundamentally undervalued at the moment compared to the firm’s long-term earnings growth potential. The Chinese leading EV maker has been one of the leading in the market during 2020. with China being the largest auto market, Nio is well-positioned to enter the long-term profit-making line. Moreover, Nio is one of the few EV firms with the best battery technology out there.

    Among Tesla Inc. and Lucid Motors, Nio is shining in battery making and brand equity. This means that Nio is anticipated to become an all-global brand by 2025. Nio has plans to expand its ecosystem in Europe and the USA shortly. So, following the forthcoming aspects of the EV maker, it’s pretty clear that Nio is undervalued.

    According to Meet Luke Lango of investorplace.com, NIO is well on track to make $6 earning per share by 2030. This suggests that Nio could touch $70 in 2021 following a 25x forward earnings growth and a 10% annual discount rate.

    • The Need of EV industry more than ever before

    The hype around the electric vehicle market is becoming a sweet reality for the world. We have seen many countries with the initiative to go green and produce zero-emission automobiles in the next ten years. 

    In that premise, Nio is among the top EV firms in the world that have strengthened its ecosystem and market. The growth of EV stocks last year was primarily based on the potential expansion of EVs. The fundamentals are strong enough to support the market in the long-term. The innovation in electric vehicles is starting to pick up the pace—in natural manners. 

    So, NIO stock lies on the verge of market growth that will help the stock grow in the future. 

    • Nio Getting into the heads of premium Investors

    In 2019, Nio faced a drought as the delivery trends suffered dramatically. This gave some investors an alarming signal that the company’s premium EV mindshare was small and slipping. But 2020 turned things around, and the investors got to see an exciting and emerging face of the Chinese EV maker. The robust demand for the ES6 and ES8 played a crucial role in Nio’s big pump last year. 

    Following that, in March and April of 2020, the deliverers rose 116.8% and 105.8% month-over-month, respectively. At the same time, the May deliveries skyrocketed over 215% year-over-year. This shows that investors are back at it and believe in the firm’s potential. With the sales delivery expected to grow, we would see investors jumping into the NIO stock. 

    •  Improving Gross Profit and Gross Margin

    Things are starting to get better for Nio. In 2020, the growing deliveries helped in higher revenue which broke the loss barrier of 2019. Recently, Nio released its Q4 and full-year reports which showed that the gross profit was RMB1,141.9 million (US$175.0 million) in Q4 compared to a gross loss of RMB253.8 million in 2019. This reflects a whopping increase in Q4 gross profit of RMB1,395.7 million.

    Whereas, for the full-year 2020, the NIO gross profit jumped to RMB1,873.4 million (US$287.1 million) compared to a gross loss of RMB1,198.8 million in 2019. The gross margin improved excessively with 17.2% in Q4 and 11.5% for full-year compared to a negative 8.9% and 15.3% in 2019, respectively.

     

    Is NIO a buy or sell? 

    We have different analysts that have their perspectives regarding Nio’s price. On different factors, they are rating the stock as a buy or sell at the moment. Recently, we have seen Nio on a downward side, which means that most of the investors have sold Nio shares overall. 

    The average trading volume remains over 110 million, but this is when to buy the stock on a dip. According to marketbeat, NIO has received a consensus rating of Buy. The company’s average rating score is 2.59 and is based on ten buy ratings, seven hold ratings, and no sell ratings. Do you think, “is Nio a good stock to buy?” Well, the market suggests so.

    NIO Stock Technical Analysis

    According to MarketSmith chart analysis, NIO shares remain below the 50-day line after a failed breakout past a 57.30 buy point in February. 

    No stock found support at the 200-day line, which is a positive signal. The rebound occurred following a Reuters report that US-listed Nio could carry out a secondary listing in Hong Kong later this year. This could help Nio to support its expansion, attracting a new investor base. Currently, Nio stock is finding some resistance at its 21-day line.

     

    NIO stock price history

    Here is the timeline of Nio’s stock price between April 2020 and March 19, 2021, monthly

    Date Open High Low Close* Adj Close**
    Mar 19, 2021 41.44 43.40 40.44 43.35 43.35
    Mar 01, 2021 48.55 50.42 31.91 43.35 43.35
    Feb 01, 2021 59.07 64.60 41.66 45.78 45.78
    Jan 01, 2021 51.20 66.99 49.08 57.00 57.00
    Dec 01, 2020 52.02 52.10 38.43 48.74 48.74
    Nov 01, 2020 33.95 57.20 31.68 50.53 50.53
    Oct 01, 2020 21.68 32.20 20.60 30.58 30.58
    Sep 01, 2020 19.45 22.59 15.61 21.22 21.22
    Aug 01, 2020 12.53 20.97 12.46 19.03 19.03
    Jul 01, 2020 7.79 16.44 7.67 11.94 11.94
    Jun 01, 2020 4.00 7.90 3.96 7.72 7.72
    May 01, 2020 3.30 4.20 3.08 3.98 3.98
    Apr 01, 2020 2.63 3.98 2.22 3.41 3.41

     

    NIO stock price target

    We have seen many EV stocks that have corrected in early 2021 following a super bullish run in 2020. Nio was continuing the rally until mid-Jan 2021 when the EV maker shares started to tumble. In no time flat – 36 days of trading to be exact – NIO stock had gone from a 52-week and all-time high of $66.99 to a 2021 low of $31.91.

    However, NIO has regained after losses during the time period. As of now in the pre-market, Nio shares are trading at $44.32 up by 2.24%. With NIO’s rise back many analysts believe that the stock is expected to rise between $60 and $70.

    In the current situation, the long-term investors may find this dip as a nice buying opportunity for NIO, based on the fact that Wall Street analysts remain bullish. There is a median 12-month price target of $57.57.

    Nio Rival Electric Car Stocks

    Nio has rising competition in the market. Tesla Inc., which is the leader of the EV market has started to expand its network in China. Along with it, Nikola Inc., Li Auto, and Xpeng are the Chinese EV companies that are up against NIO.

    The competition is immense and Nio has to cope up with the growing market rivalry.  In January, Tesla launched its made-in-China Model Y, a slightly cheaper rival to Nio’s new EC6 electric crossover. In late March, Volkswagen will begin delivering the far-cheaper, made-in-China ID.4. So, we can see how other EV makers are coming into the picture against Nio’s marketplace in China.

    However, NIO has its own significance as it has a lot of expanding capacity in China and is looking to launch in Europe later this year is a big edge for the company.

    NIO Earnings and Fundamental Analysis

    When we look into the key earnings and fundamental factors, Nio lags. The Chinese EV maker is a young and fast-growing company. Things are getting better and we have seen the reflection of Nio’s robust growth in 2020.

    On March 1, Nio delivered a wider-than-expected loss for the fourth quarter. Moreover lost $0.14 per share as revenue more than doubled to $1.02 billion. While the margins expanded over the quarterly period and earnings remain elusive, losses are narrowing.

    The quarterly and full-year reports depicted a positive image of the company in the coming period. The increase in deliveries and gross profit shows that Nio is lowering its net loss.

    Nio stock earns an EPS Rating of 51 out of 99, and an SMR rating of D, on a scale of A+ to a worst E. The EPS rating compares a company’s earnings growth against other companies. The SMR Rating reflects sales growth, profit margins, and return on equity.

    In 2021, on average, analysts expect Nio to cut off its losses to $0.41 per share from $0.66 per share last year. The rising revenue is anticipated to rise up to $5.23 billion this year, which can take the earnings growth to 75% by 2022.

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    NIO stock forecast

    The NIO Inc. price started in 2021 at $48.74. Today traded at $43.35, so the price decreased by -11% from the beginning of the year. For this year, Nio’s price is expected to end at $56.88, which will reflect a year-over-year change of 17% rise. In the long-term period, let’s have a look at the forecast of Nio’s share price.

    NIO forecast 2025

    According to the latest long-term forecast for Nio, the shares are expected to reach $156.76 by mid-year in 2025 and close the year at $170.87. This will show a rise of 294% from today’s price.

    NIO forecast 2030

    Nio is anticipated to reach $235.03 by mid-year 2030 and close the year at $240.56. This will reflect a rise of a whopping 455% from today’s price.

    Conclusion

    Currently, Nio (NIO) is shaping up to enter the phase it will really begin its rise in real terms. 2021 will be a defining year for the Chinese EV maker and how it plans to integrate into the European and US marketplace.

    Is Nio a stock to buy? Analysts see NIO as a decent stock among the other EV stocks. With a strong future outlook, investors can make big bucks from Nio.