Robinhood Stock Continues To Slide. Time To Get In?

Robinhood Stock Continues To Slide. Time To Get In?

POLAND - 2021/02/08: In this photo illustration a Robinhood logo seen displayed on a smartphone with ... [+] the stock market graphic in the background. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)

Robinhood Markets, the zero-commission online brokerage popular among millennials, has seen its stock price decline by about 16% over the last week (five trading days) to about $47 per share. This compares to the S&P 500 which was up by roughly 1% over the same period. Although there wasn’t much negative news relating to the company in the past week, Robinhood has emerged as a “meme” stock of sorts, with its price movement dictated by interest from retail traders and other technical factors such as its float. The company allocated about 35% of its IPO shares to retail investors and also had relatively lax IPO lockup rules, translating into a higher float and more volatility. Moreover, the stock saw a major rally post its listing, rising by as much as 85% from its IPO price of about $38 at one point earlier this month and this has likely caused investors to book some profits.