$HOOD 102.27, down 8.22% in 24h, plunging from 111.92 to 101.92, with a trading volume of 33.6M. Earnings aren't due until October 27, but the stock is already selling off in anticipation.
Robinhood's revenue has long been about more than just commissions; crypto trading and options make up a sizable share. When crypto trading volume dries up, its own trading volume withers too, and the stock naturally takes a hit. From the TradFi perspective, this drop looks like a reshuffling in the fintech sector; from the crypto perspective, it's risk appetite pulling back. Two groups are selling the same thing for different reasons, with the same result.
Some are still comparing it with $MS and debating which is the better buy. One manages other people's money; the other bets on other people's trading. Different cycles, different fates.
A stock like $HOOD is an amplifier in a bull market and a truth-revealer in a bear market. At 102, it's neither cheap nor expensive. It all comes down to whether retail investors will still want to open that app over the next two quarters.
#Robinhood
Robinhood's revenue has long been about more than just commissions; crypto trading and options make up a sizable share. When crypto trading volume dries up, its own trading volume withers too, and the stock naturally takes a hit. From the TradFi perspective, this drop looks like a reshuffling in the fintech sector; from the crypto perspective, it's risk appetite pulling back. Two groups are selling the same thing for different reasons, with the same result.
Some are still comparing it with $MS and debating which is the better buy. One manages other people's money; the other bets on other people's trading. Different cycles, different fates.
A stock like $HOOD is an amplifier in a bull market and a truth-revealer in a bear market. At 102, it's neither cheap nor expensive. It all comes down to whether retail investors will still want to open that app over the next two quarters.
#Robinhood