5 Red Flags for Robinhood Markets' Future
Robinhood (NASDAQ: HOOD) stock currently trades more than 40% below its IPO price and about 75% below its all-time high. The online brokerage lost its luster as investors fretted over its decelerating growth, loss of active users, widening losses, and regulatory headwinds.
But after that steep decline, the stock trades at about ten times this year's sales, a reasonable premium for a company expected to grow revenue over 80% this year. Bargain hunters might be tempted to buy Robinhood at these levels, but they should take note of these five red flags that could limit its future gains.
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Source Fool.com
