Wednesday, June 29, 2022

Robinhood share price down 70% from August high

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

Robinhood is a monetary companies firm that additionally acts as a retail buying and selling platform for atypical customers. It is identified for meme shares and at present gives 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 beneath the $38 IPO worth for weeks. A number of elements are contributing to the autumn, resembling a drop in crypto and meme shares day buying and selling because the pandemic period involves an finish and folks return to their places of work 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 grow to be the most-utilized alternate on the market. Those that assume crypto is actual and right here for the lengthy haul might wish to take a detailed have a look at this firm proper now.”

There’s additionally an enormous demand for Robinhood to launch its pockets function, which at present 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 might merely wish to withdraw their present 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 neighborhood together with a petition to record SHIB on Robinhood that at present has 541,000 signatures. Competitor Kraken this week launched SHIB trading which was adopted by a 30% improve within the worth. Such worth motion might 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 median worth goal of $45 from 13 analysts, which represents 73.3% upside potential.