Robinhood (HOOD) has dropped nearly 70% from its ATH of $70.39 to $25.94 since August 4, and it has been trading below the $38 IPO price for weeks
Robinhood suffers a drop in share price
As Robinhood suffers from a dropping stock price, may expanding its cryptocurrency services assist the company’s outlook?
Robinhood is a financial services company that also serves as a retail trading platform for regular people. It is well-known for meme stocks and presently trades seven cryptocurrencies.
HOOD has dropped nearly 70% from its ATH of $70.39 to $25.94 since August 4, and it has been trading below the $38 IPO price for weeks. Several variables are contributing to the dip, including a drop in crypto and meme stocks traded on day trading as the epidemic era ends and people return to work.
Dogecoin (DOGE) trading accounted for 41 percent of Robinhood’s total revenue in Q2 2021, and 62 percent of the $233 million generated by cryptocurrency trading.
However, bitcoin trading declined 79 percent in the third quarter and accounted for only 19 percent of total income.
Chris MacDonald, a TipRanks contributor, believes that cryptocurrency is the key to HOOD’s long-term success.
“Robinhood appears to continue to ramp up its efforts to become the most-utilized exchange out there. Those who think crypto is real and here for the long haul may want to take a close look at this company right now.”
HOOD wallet service
HOOD’s wallet service, which presently has over 1.6 million people in a queue, is also in high demand. As of the end of the third quarter of 2021, this amounted to roughly 7% of its total user base. While some people intend to use the wallet to trade more, others may simply wish to withdraw their existing tokens from Robinhood’s platform.
The brokerage has not made a firm decision about listing Shiba Inu (SHIB). The community is making a strong push, including a petition to put SHIB on Robinhood, which already has 541,000 signatures.
Kraken, a competitor, introduced SHIB trading this week, which resulted in a 30% price hike. Given the potential to replicate the growth seen during the DOGE trading frenzy in Q2, such price action may help persuade Robinhood of the merits of listing the memecoin.
Despite the current price slump, Wall Street appears to regard HOOD favorably for the time being. According to Nasdaq, 13 analysts have set an average price target of $45 for the stock, representing a 73.3 percent upside potential.
