Should you buy Hood stock?
Apr 08, 2022 · Robinhood NASDAQ Updated Mar 23, 2022 10:25 AM. HOOD 13.42 0.37 (2.84%) Pre-Market 0.05 (0.37%) 52,135. Key Data.
Will Hood stock go up?
Apr 13, 2022 · HOOD | Complete Robinhood Markets Inc. stock news by MarketWatch. View real-time stock prices and stock quotes for a full financial overview.
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Why is everyone talking about Robinhood stock?
Jan 28, 2022 · This is why it happened. The stock price of Robinhood (NASDAQ: HOOD) fell by over 15% pre-market today. Investors are responding negatively to the company’s results for the fourth quarter and full-year 2021. Investors have concerns about the company reporting a worse-than-expected first-quarter outlook and the loss in the number of active users.
Why is Robinhood stock falling?
Topline. Shares of popular stock trading app Robinhood tumbled over 10% after the company reported fourth quarter earnings that failed to impress investors, while also issuing a grim revenue forecast for the start of 2022 as trading activity continues to slow down.Jan 27, 2022
Is Hood a good stock to buy right now?
Robinhood Markets Cl A (HOOD) The company boasts solid sales growth in recent quarters, and the company's potential is encouraging amid the surging popularity of stock trading among young investors. Shares are far from their post-IPO highs and there is no current buy point, so the stock isn't a buy right now.Jan 28, 2022
Is Hood a buy or sell?
Out of 14 analysts, 4 (28.57%) are recommending HOOD as a Strong Buy, 1 (7.14%) are recommending HOOD as a Buy, 6 (42.86%) are recommending HOOD as a Hold, 1 (7.14%) are recommending HOOD as a Sell, and 2 (14.29%) are recommending HOOD as a Strong Sell.
Is Robinhood safe?
YES–Robinhood is absolutely safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC. Furthermore, Robinhood is a securities brokerage and as such, securities brokerages are regulated by the Securities and Exchange Commission (SEC).Dec 1, 2021
What happened
Shares of Robinhood ( HOOD 0.87% ) sank on Thursday after the popular stock-trading platform said a group of its early investors filed to sell more than 97 million shares. At 12:15 p.m. EDT, Robinhood's stock price was down 13%.
So what
Robinhood conducted its initial public offering ( IPO) last week. After initially falling below its $38 IPO price, Robinhood's shares quickly rebounded. News that fund manager Cathie Wood had purchased shares for her closely followed ARK Invest funds helped to spark the rally.
Now what
The news that several of Robinhood's largest investors are choosing to take profits so soon after its IPO is a bit concerning.
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Why HOOD stock is falling
HOOD stock ran way ahead of its fundamentals at the peak. The rise was driven by speculative trading including rumors that the trading app might also get into the BNPL (buy-now-pay-later) market. The bullish narrative is unwinding now, which is leading to a fall in HOOD stock.
Robinhood earnings
Robinhood reported revenues of $565 million in the quarter, which were 131 percent higher than the same period in 2020. The revenues were towards the upper end of its guidance of $546 million–$574 million. The company posted a net loss of $502 million in the quarter, which was within the guidance of a loss between $487 million–$537 million.
HOOD stock forecast
Since HOOD was only recently listed, only four analysts are covering it. While analysts two rate the trading app as a buy or some equivalent, two rate the stock as a hold. Its median target price of $65 is a premium of over 30 percent above the current prices.
Should you buy or sell HOOD stock?
While Wall Street analysts have a bullish forecast for HOOD stock, I would be wary of buying the stock here. The stock could see selling pressure in the near term. Robinhood stock looked overvalued during the IPO and despite the crash, it still trades above the IPO price.
Key Points
Robinhood derives 78% of its revenue from payment for order flow, which could be barred by U.S. regulators.
A business model under fire
Traditionally, a stock broker's job is to connect clients to other participants in the market. If a client wants to buy stock in a company, the broker finds a willing seller, and for that service the broker earns a commission.
The crypto shift, and the big data breach
It's not just the regulators putting pressure on Robinhood. Investors have been exiting the stock for several months, which seemed to coincide (in part) with the company's decision to deviate its focus away from stock and options trading products and into cryptocurrency offerings.
A long road back
There's no question Robinhood has changed investing for the better in many ways. The stock market has typically never been a young person's game, but Robinhood helps first-time investors gain valuable experience while they don't have a significant net worth to place at risk.
