Robinhood share price down 70% from August high


Related articles

As Robinhood struggles with its declining share worth, might ramping up its cryptocurrency choices assist increase the corporate’s outlook?

Robinhood is a monetary providers firm that additionally acts as a retail buying and selling platform for extraordinary customers. It is identified for meme shares and at the moment presents seven cryptocurrencies for buying and selling.

Since Aug. 4, Robinhood (HOOD) has fallen almost 70% from its ATH of $70.39 to $25.94, and it’s been under the $38 IPO worth for weeks. A number of components are contributing to the autumn, reminiscent of a drop in crypto and meme shares day buying and selling because the pandemic period involves an finish and other people return to their workplaces to work.

Robinhood loved huge features in Q2 2021 when Dogecoin (DOGE) buying and selling accounted for 41% of Robinhood’s complete income, and 62% of the $233 million generated by cryptocurrency buying and selling.

Nevertheless, cryptocurrency buying and selling fell 79% in Q3 and solely accounted for 19% of its complete revenue.

Chris MacDonald, a contributor to TipRanks, nonetheless believes that cryptocurrency iks the important thing to Robinhood’s long run success.

“Robinhood seems to proceed to ramp up its efforts to change into the most-utilized alternate on the market. Those that assume crypto is actual and right here for the lengthy haul could need to take an in depth take a look at this firm proper now.”

There’s additionally an enormous demand for Robinhood to launch its pockets function, which at the moment has over 1.6 million users on the waitlist. That’s about 7% of its complete person base as of the top of Q3 2021. Whereas some are planning to commerce extra with the pockets others could merely need to withdraw their current tokens from Robinhood’s platform.

The brokerage has not stated something definitive about itemizing Shiba Inu (SHIB). There is a huge push on from the group together with a petition to listing SHIB on Robinhood that at the moment has 541,000 signatures. Competitor Kraken this week launched SHIB trading which was adopted by a 30% enhance within the worth. Such worth motion could assist persuade Robinhood of the deserves of itemizing the memecoin given the potential to repeat the expansion it skilled from the DOGE buying and selling frenzy in Q2.

Associated: Robinhood exec says proposal for a single digital asset regulator is stupid

Regardless of the present worth doldrums Wall Road seems to view HOOD favorably for now. Nasdaq has indicated a mean worth goal of $45 from 13 analysts, which represents 73.3% upside potential.