Robinhood Markets Shares Plunge Amid Crypto Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy HOOD?
Source: Fool
- Significant Stock Decline: Robinhood Markets closed at $89.91 on Monday, down 9.62%, reflecting investor concerns over weakened cryptocurrency trading volumes that could impact the company's transaction-based revenue.
- Surge in Trading Volume: The trading volume reached 59 million shares, approximately 136% above the three-month average of 25 million shares, indicating heightened market interest in Robinhood's stock, yet failing to counteract the downward price trend.
- Cryptocurrency Market Volatility: Bitcoin has fallen over 12% in the past five days, nearing a ten-month low, suggesting that instability in the crypto market may negatively affect risk appetite among Robinhood's retail users, thereby impacting its revenue streams.
- Revenue Source Risks: As Robinhood primarily earns from payment for order flow, a decline in trading volume could lead to reduced revenue, raising investor concerns about the company's future profitability and putting pressure on its stock price.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 72.680
Low
130.00
Averages
156.24
High
181.00
Current: 72.680
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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