Bank of America Is the Most Popular Financial Stock on Robinhood. Should It Be?
Robinhood has become a popular trading platform for new investors during the COVID-19 pandemic, and the top bank stock traded on the site as of Monday morning is Bank of America (NYSE: BAC). Some of the other heavily traded companies make sense for first-time investors, such as Walt Disney and Amazon.com. Should Bank of America be on that list? Read on to find out.
Let's take a look at how Bank of America is doing. Second-quarter results were better than analysts expected, even with net interest income down 11% year over year and a 9% drop in pre-provision income -- that is, net income before the effects of taxes and provision for loan losses. But loss provisions have been high for most banks as the economy has suffered during the pandemic, and Bank of America's $4 billion provision in Q2 brought earnings per share down 50% year over year to $0.37 per share.
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Source Fool.com
