Robinhood Stock Has Soared 65% From Its 52-Week Low. Here's Why I'm Predicting Another Sell-Off.
The online investment platform's biggest growth drivers are extremely volatile, which isn't a recipe for long-term returns.
Robinhood Stock Has Soared 65% From Its 52-Week Low. Here's Why I'm Predicting Another Sell-Off.
Overview
Robinhood Markets (NASDAQ: HOOD) operates a popular investing platform where its clients buy and sell stocks, futures, options, cryptocurrency, and even contracts in the prediction markets. Its stock hit a 52-week low of $63 in March, capping off a brutal 57% decline from last year's record high of $154.
The sell-off was sparked by weakness in Robinhood's options and crypto trading businesses, which account for most of its transaction-based revenue. But the company's monthly brokerage metrics showed a recovery in those areas in May, so its stock has surged by around 65% from its March low.
Details
While that sounds encouraging, I don't think the recovery will last. In fact, here's why I'm predicting another sharp move lower for the stock.
Source
Originally published at www.fool.com.
