Robinhood continues struggling with its declining share price. Also, stepping up its cryptocurrency offerings could help boost the company’s outlook.
Furthermore, Robinhood is a financial services company, acting as a retail trading platform for simple users. More so, It’s popular for meme stocks and currently offers seven cryptocurrencies for trading.
Additionally, after Aug. 4, Robinhood (HOOD) is seeing 70% decline from its ATH of $70.39 to $25.94. Currently, it’s been below the $38 IPO price for weeks. Also, Some of the factors affecting this decline is from a drop in crypto and meme stocks day trading. Of course, as the pandemic era is approaching the end and people now return to their offices.
More so, Robinhood witnesses massive profits in Q2 2021 when Dogecoin (DOGE) trading accounts for 41% of Robinhood’s total revenue. Also, 62% of the $233 million from cryptocurrency trading.
However, cryptocurrency trading declines 79% in Q3 and only accounts for 19% of its total revenue.
Additionally, Chris MacDonald, a contributor to TipRanks thinks that cryptocurrency is the key to Robinhood’s long term success.
“Robinhood appears to continue to ramp up its efforts to become the most-utilized exchange…”
“out there. Those who think crypto is real and here for the…”
“long haul may want to take a close look at this company right now.”
There is also a big demand for Robinhood to launch its wallet feature, which currently has over 1.6 million users on the waitlist. That’s about 7% of its total user base as of the end of Q3 2021. While some are planning to trade more with the wallet others may simply want to withdraw their existing tokens from Robinhood’s platform.
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