Sell Robinhood Stock As Meme Stock Craze Fades?

Sell Robinhood Stock As Meme Stock Craze Fades?

Robinhood Markets stock (NASDAQ: HOOD) declined by almost 13% over the last week, after the company published a weaker than expected set of Q3 2021 results. Revenue declined by about 15% sequentially to about $365 million as the company's crypto business - which investors were counting on to be a long-term driver of growth - saw a big hit, with transaction-based revenue declining $51 million, down from $233 million in the second quarter. Although Bitcoin prices actually gained through Q3, Robinhood's crypto revenue has been more dependent on Dogecoin, which saw prices decline a bit in recent months. Robinhood also saw total funded accounts on its platform drop to 22. 4 million, down from 22. 5 million at the end of the second quarter as the so-called "meme stock" craze that drove engagement earlier this year faded. In comparison, the company added about 10 million accounts over the first half of the year. So is Robinhood stock a buy after the recent sell-off? Although the stock now trades at about $35 per share, about 8% below its IPO price and around 50% from its all-time highs, we think the stock has meaningful risks. It should be pretty clear to investors