This Was a Growth Stock; Now Wall Street Says, "Dump It"
The world is still living alongside a global pandemic, but many of the worst restrictions have subsided. The economy has reopened, and day-to-day life has mostly returned to normal. But there's a key pandemic-era trend that has completely reversed.
Throughout 2020 and 2021, retail investors flooded the stock market with their pandemic stimulus checks, rushing into high-flying growth stocks with little regard for price or valuation. Their trading platform of choice was Robinhood Markets (NASDAQ: HOOD), resulting in millions of new customers for that company and a supercharged growth rate for its business.
Robinhood took advantage of the ideal environment and listed its own stock on the public markets. Investment bank Goldman Sachs was the lead underwriter, meaning it was responsible for raising money on behalf of Robinhood to make its initial public offering (IPO) possible -- and it pulled this off successfully.
Source Fool.com
