Since Robinhood doesn't allow its users to buy over-the-counter-listed stocks, they're left with an array of underperforming Canadian pot stocks on major U.S. exchanges. Somehow, young investors keep gravitating to the worst one of the bunch: Aurora Cannabis (NYSE: ACB
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Full Answer
Why is Robinhood (Hood) stock falling?
Why Is Robinhood (HOOD) Stock Falling Today? The retail brokerage's stock is falling on news that it is cutting its workforce Robinhood (NASDAQ: HOOD) stock is down nearly 2% today after the retail brokerage announced that it is cutting 9% of its workforce.
What is Robinhood and how does it work?
Robinhood has taken the investing universe by storm, arming a new generation of investors with the tools they need to start putting money to work in the stock market.
Is Aurora Cannabis stock a buy or sell?
However, Wall Street isn't convinced. Aurora Cannabis ( NASDAQ:ACB) gets only a single buy rating among 17 analysts, with four sells and 12 holds. HEXO ( NASDAQ:HEXO) isn't much different, with one buy, 12 holds, and one sell. Both Aurora and HEXO had terrible times in 2020, falling 68% and 42%, respectively.
Why do Wall Street analysts hate Robinhood stocks?
Many of them trade frequently and sometimes buy shares of doomed companies in the hope of making a quick short-term profit. As a result, many of the favorite stocks on Robinhood have gotten utterly panned by Wall Street stock analysts.
Is Aurora A Good Investment?
Aurora Cannabis is a loss-making company struggling with tepid revenue growth and shareholder dilution. It's a high-risk bet even after losing 90% in market value in the last three years. There are far better growth stocks that you can buy right now.
Can you invest in OTC stocks on Robinhood?
Does Robinhood support OTC stocks? Robinhood does not support trading OTC stocks. The only penny stocks supported by Robinhood are stocks that trade on either the NASDAQ or NYSE.
Can I buy Curaleaf stock on Robinhood?
Currently, US investors can only purchase the Curaleaf stock over the counter (OTC), but many popular platforms like Robinhood don't allow buying and selling all stocks that trade over the counter.
Is Sundial growers a buy?
Following the Q3 earnings report, Sundial shares experienced a strong rally. However, even though SNDL is worth just over 50 cents and is under pressure to pass the $1-per-share level to remain in compliance with Nasdaq, here are three reasons why buying the stock ahead of earnings could be a good deal.
Why are some stocks not available on Robinhood?
Stocks may not be searchable, or may be labeled as untradable for a few reasons: The exchange has paused trading. The stock was delisted from the major exchanges and trades in the OTC market. It's a foreign security, which we don't support.
Why are there no penny stocks on Robinhood?
While Robinhood allows users to choose from hundreds of penny stocks to invest in, the platform's offering is actually limited to companies listed on the NASDAQ and the New York Stock Exchange (NYSE). This is a drawback for some investors since most penny stocks trade over-the-counter (OTC).
What happens when a stock goes from OTC to Nasdaq?
Depending on the circumstances, the stock symbol may change. A stock that moves from the OTC to Nasdaq often keeps its symbol—both allowing up to five letters. A stock that moves to the NYSE often must change its symbol, due to NYSE regulations that limit stock symbols to three letters.
Is it smart to invest in medical Marijuanas?
Investing in the medical marijuana sector is relatively risky as long as cannabis remains federally illegal in the U.S. The plant's federal status also constrains the growth of the sector, and investors have no guarantee that the federal government will continue to allow states to treat cannabis as legal.
Who is Curaleaf owned by?
Curaleaf CURA, -1.36% CURLF, -0.99% said its founder, executive chairman and largest shareholder Boris Jordan is an American citizen who was born in Long Island, N.Y., and that he's never been a citizen of any other country. He owns about 22% of the company's stock.
Will SNDL stock go up?
Sundial Growers Inc (NASDAQ:SNDL) The 3 analysts offering 12-month price forecasts for Sundial Growers Inc have a median target of 0.50, with a high estimate of 0.81 and a low estimate of 0.49. The median estimate represents a +49.97% increase from the last price of 0.33.
Why is SNDL stock so low?
SNDL Stock and Non-Compliance Sundial Growers has had consistent troubles complying with the Nasdaq minimum bid rule. The stock has traded below the $1 minimum bid since March 2020, with the exception of a brief period in early 2021 due to Reddit excitement. That too, passed, sending SNDL stock below $1 again.
Is SNDL getting delisted?
SNDL Stock: Sundial Avoids Delisting The Nasdaq gave Sundial this notice last August.
How do I buy OTC stocks?
The easiest way to buy OTC stocks is to set up an account with an online brokerage that supports trading of them. However, not all online brokerages offer them. Some brokerages that do include Fidelity, TD Ameritrade, Charles Schwab, and Interactive Brokerages.
Can I buy OTC stocks on Etrade?
Yes, Etrade does offer Over-The-Counter (OTC) penny stocks trading. Your Etrade account will provide you access to the OTC Markets which include trading via dealer networks for companies that typically are smaller as compared to major corporations listed on the major U.S. listed exchanges (NYSE, AMEX, NASDAQ).
Can I buy pink sheet on Robinhood?
Unlike the stock for most major companies, you can't buy and sell shares of pink sheet stocks on a major stock exchange. Instead, pink sheets are traded over-the-counter by a company called OTC Markets Group Inc.
Can I buy OTC stocks on TD Ameritrade?
Over-The-Counter (OTC) Stocks can be purchased on TD Ameritrade and other brokers such as E-Trade until September 3, 2021. OTC Securities that have not filed to become Pink Current may be given the Red Stop-Sign on the OTC Market Group website and trading restricted.
There are several potential reasons behind the beaten-down pot stock's following on the trading platform
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
Popular but pitiful
Aurora Cannabis might be popular, but that's about all the company has going for it these days. Just look at the stock's pitiful performance.
Most likely attractions
Despite all this, Aurora is still more popular among Robinhood investors than any other marijuana stock. We can't know exactly what's inside these investors' minds, but here are some guesses that could explain Aurora's popularity.
Follow your mother's advice
All of these are possible reasons why Aurora Cannabis remains so popular among Robinhood investors. Are they good reasons to buy the stock? I wouldn't go that far.
Millennial Ownership of ACB Stock Is a Big Deal
No question, younger investors are going to be more open to investing in cannabis stocks. They’re more familiar with the product itself and aren’t nearly as concerned about the stereotypes surrounding its use.
Youthful Exuberance for Aurora Stock Is Also a Risk
Here’s the big problem with Aurora sitting on pole position for Robinhood’s list: millennials may view the volatility of ACB stock and cannabis investments in general as a pathway to quick riches. You can’t necessarily blame them, as the sector tends to move wildly on the smallest of news.
The Bottom Line
As every day passes, I get more enthusiastic about Aurora stock. While I’m not entirely sold on its overall business, I appreciate its efforts to become a global player. This is a strategy that’s right in line with Canopy Growth and some of the other large Canadian cannabis companies.
Will Carnival survive Robinhood?
That means an eventual recovery might not benefit the stock as much as Robinhood investors would like. Carnival will probably survive, but it might not show up in much higher stock prices. 2.
Does Robinhood follow Wall Street?
However, Robinhood investors don't always follow Wall Street's rules. They often like speculative stocks that have chances for big gains but also outsized risk. Many of them trade frequently and sometimes buy shares of doomed companies in the hope of making a quick short-term profit.
Is Hexo up in 2020?
Both Aurora and HEXO had terrible times in 2020, falling 68% and 42%, respectively. But they've bounced back to start the new year. HEXO has almost doubled, while Aurora is up 40%. Bullish investors hope that a new administration in Washington will work to decriminalize marijuana at the federal level.
Investment Thesis
Robinhood ( HOOD) is a stock that I've been consistently arguing that investors should avoid. As I weigh up how Robinhood's 2022 prospects are likely to unfold, even while acknowledging that the stock is now priced at 5x this year's revenues, I declare that investors should avoid this name.
Robinhood's Revenue Growth Rates Are Too Unpredictable
Robinhood is about to announce its Q4 2021 results next Thursday after hours. Importantly, we are going to get its guidance for Q1 2021. Given that Q1 2021 was so strong last year, most reasonable minds will expect the guidance for Q1 2022 to be negative y/y. However, the question that remains outstanding is just how negative?
Robinhood's Near-Term Prospects Discussed
As you can see from the graphic above, the majority of Robinhood's revenues come from its transaction-based revenues.
HOOD Stock Valuation - At 5x Sales, Still Too Expensive
This time last year, if a company was expected to grow its revenues by mid 20s% CAGR over the coming year, paying 5x sales was an absolute bargain.
The Bottom Line
If you didn't have time to read this, this is the summary, Robinhood is a very poor investment at an expensive valuation.
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