- Robinhood stock price has been in a strong bearish trend lately.
- Analysts at Goldman Sachs and Deutsche Bank downgraded the stock.
The Robinhood stock price is hovering near its all-time low as the company’s recovery wanes. HOOD is trading at $11.25, which is about 86% below its all-time high. Its market cap has crashed to about $9.7 billion. At its peak, the company was valued at over $40 billion.
Engagement slides
Robinhood is a financial platform that allows people to buy cryptocurrencies and other financial assets like stocks and options. The firm revolutionized the industry by eliminating commissions and introducing the concept of gamification in trading.
Robinhood did well in early 2021 as most Americans received their stimulus checks from the government. Stocks and cryptocurrency prices were surging and the concept of Wall Street Bets was pushing most people to the market.
Times have changed and Robinhood is now less engaged considering that the government has not offered any stimulus lately. Also, many people who took part in last year’s euphoria lost money and have stayed out of the market.
On Friday, Robinhood launched a new crypto wallet to about 2 million people who were in its watchlist. The new app allows people to store their cryptocurrencies and tip creators on social media. They can also pay for non-fungible tokens (NFTs) using the app for free.
However, an early look at the app showed that it had serious limitations that could discourage users. For example, the number of coins in the platform is sharply lower than in other companies like Coinbase. It only offers Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, ETH, ETCM, and LTC. This explains why the HOOD stock price dropped after the launch.
The Robinhood share price also dropped as analysts continued lowering their targets for the stock. For example, this month, Goldman Sachs lowered its target from $15 to $13. Deutsche Bank and JMP Securities also lowered their target.
Robinhood stock price forecast
The daily chart shows that the HOOD share price has been in a strong bearish trend in the past few months. The stock remains below the 25-day and 50-day moving averages, signaling that bears are in total control.
The stock has also dropped below the important resistance level at $15.40, which was the highest point on February 7th and March 22nd.
The MACD has also moved slightly below the neutral level. Therefore, there is a likelihood that the Robinhood share price will continue falling in the coming days. A drop below $10 will lead to further declines to about $8.
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