As Robinhood struggles with its declining share value, might ramping up its cryptocurrency choices assist enhance the corporate’s outlook?
Robinhood is a monetary providers firm that additionally acts as a retail buying and selling platform for atypical customers. It is identified for meme shares and at the moment gives seven cryptocurrencies for buying and selling.
Since Aug. 4, Robinhood (HOOD) has fallen practically 70% from its ATH of $70.39 to $25.94, and it’s been beneath the $38 IPO value for weeks. A number of elements are contributing to the autumn, corresponding to a drop in crypto and meme shares day buying and selling because the pandemic period involves an finish and other people return to their workplaces to work.
Robinhood loved huge positive aspects in Q2 2021 when Dogecoin (DOGE) buying and selling accounted for 41% of Robinhood’s whole income, and 62% of the $233 million generated by cryptocurrency buying and selling.
Nonetheless, cryptocurrency buying and selling fell 79% in Q3 and solely accounted for 19% of its whole revenue.
Chris MacDonald, a contributor to TipRanks, nonetheless believes that cryptocurrency iks the important thing to Robinhood’s long run success.
“Robinhood seems to proceed to ramp up its efforts to grow to be the most-utilized change on the market. Those that suppose crypto is actual and right here for the lengthy haul could wish to take a detailed have a look at this firm proper now.”
There may be additionally an enormous demand for Robinhood to launch its pockets characteristic, which at the moment has over 1.6 million users on the waitlist. That’s about 7% of its whole consumer base as of the tip of Q3 2021. Whereas some are planning to commerce extra with the pockets others could merely wish to withdraw their current tokens from Robinhood’s platform.
The brokerage has not stated something definitive about itemizing Shiba Inu (SHIB). There is a huge push on from the neighborhood together with a petition to record SHIB on Robinhood that at the moment has 541,000 signatures. Competitor Kraken this week launched SHIB trading which was adopted by a 30% improve within the value. Such value motion could assist persuade Robinhood of the deserves of itemizing the memecoin given the potential to repeat the expansion it skilled from the DOGE buying and selling frenzy in Q2.
Regardless of the present value doldrums Wall Road seems to view HOOD favorably for now. Nasdaq has indicated a mean value goal of $45 from 13 analysts, which represents 73.3% upside potential.