Following the IPO of Robinhood Markets on July 29 this year, the share price is now hitting lows as winter approaches. Initially quoted at around $40, the shares initially doubled in price in August, but then fell further and further to below $28. This means they are now 23% cheaper than when they went public.
The stock and crypto investment broker, which is mainly favored by retail investors, was the victim of a hacking attack earlier this month, further fueling its share price decline since the summer. This involved the theft of data from millions of customers of the online broker. However, the business figures, which fell short of analysts’ expectations, probably also contributed to the red share price figures. The 78% drop in crypto trading turnover on the platform and reduced trading activity overall can also be listed as reasons for the price drop.
Although the stock appears so cheap at the moment, further corrections could follow. In terms of Robinhood’s competitiveness, it’s worth bearing in mind that the provider focuses on small accounts, with correspondingly small margins. There are also no signs yet of a reversal in the price trend that could possibly lead to new price gains.
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