Robinhood’s Share Price Dropped 70% Since August
Since August 4, Robinhood’s (HOOD) share price has dropped nearly 70% from ATH of $70.39 to $25.94, and the IPO price has been below $38 for several weeks.
Robinhood has made great strides in Q2 2021. At that time, Dogecoin (DOGE) trading accounted for 41% of Robinhood’s total revenue and 62% of the $ 233 million generated from cryptocurrency trading.
However, in the third quarter, cryptocurrency trading fell 79% and accounted for only 19% of total revenue.
Chris McDonald of TipRanks continues to believe cryptocurrency is the key to Robinhood’s long-term success.
But these Robinhood results do not seem to scare investors. Ark Investment, an investment management company specializing in innovative technologies led by Katie Wood, recently acquired nearly $ 80 million worth of Robinhood shares.
There is also strong demand for Robinhood to launch its wallet feature, with over 1.6 million users currently on the waiting list. This is about 7% of its total user base as of the end of the third quarter of 2021.
Despite the current slump in prices, Wall Street seems to be favouring HOOD as well. The Nasdaq indicated an average price target of $ 45 from 13 analysts, representing 73.3% upside potential.