What’s Happening With Robinhood Stock?

What’s Happening With Robinhood Stock?

Robinhood Markets is best known as a zero-commission brokerage app that Millennials turned to, to cash in on the soaring Covid-19 stock market and to ride the meme stock wave. However, Robinhood stock which was listed in late July hasn't really delivered for investors since its listing this Summer. While Robinhood was listed at a price of about $38 per share, it currently trades just about $42 per share, after briefly rising to as much as $70 per share. So what's holding Robinhood stock back? We think there are a couple of factors. Retail traders, who powered Robinhood's growth, are likely to be less interested in stock trading, as they headed back to the office and seek entertainment outdoors, following the Covid-19 lockdowns. For perspective, Robinhood's app downloads, which can be viewed as a rough estimate of new account openings, declined 78% over Q3 2021, versus Q2, per data from Apptopia. Other brokerages and crypto trading platforms have seen much smaller declines, in comparison. There also appears to be some regulatory concerns for Robinhood. The company's core equity and options business is facing some scrutiny from the SEC over its revenue model which entails selling the order flow of its