Where Next for Robinhood: Could the Retail Investing Giant’s Stock Recover to its $70 Peak?
- Date: 11-Oct-2021
- Source: Finextra
- Sector:Retail
- Country:Middle East
Where Next for Robinhood: Could the Retail Investing Giant’s Stock Recover to its $70 Peak?
After one of the most heavily anticipated IPOs of 2021, Robinhood has endured a tumultuous introduction to public life. With the emergence of formidable competitors and regulatory scrutiny of the company’s payment-for-order flow model, the value of HOOD
shares has fallen some 40% from its $70 peak in early August. Now it’s worth asking whether the stock can recover its early success?
Despite the difficulties that Robinhood faces in the near future, it’s worth remembering that the company is showcasing strong fundamentals, and is currently trading a healthy 20% above its opening share price on the NASDAQ - albeit after a
lowering of expectations ahead of its IPO in late July.
The arrival of HOOD on Wall Street was met with the sort of volatility that the online brokerage has become synonymous with following the
role that the platform played in the short squeezes of both GameStop and AMC earlier in the year.
After a significant volume of early
market sentiment towards the stock, the price of HOOD shot up to a peak of $70.39. However, as interest cooled, Robinhood was met with increasing levels of SEC scrutiny over the company’s controversial payment-for-order flow business model and the revelation
that both PayPal and Revolut were