So I am looking at Robinhood drop late in the afternoon. I am trying to figure out if we we'll see a soft landing after Crypto Bankman-Gets-Fried. What will happen to HOOD...He has a 7.5 stake in Robinhood?? How and when will those shares get disposed of? Have they mostly been sold? Just a big ??? Anyways...I pulled the trigger. I bought 100 shares of HOOD (in Roth IRA) at $8.48. I then did a covered call for the Mar 23 $1.41 ($141.00) at $9... I know I have bad mouthed HOOD for years. Their disaster with oil futures, not filling orders, no customer service...I get it. But at a price this cheap...I wanted in. Again I am talking about a trade of less than $1,000. Thinking long and hard...What do I like about them (can make a long list of what I don't like about them...You can help I'm sure). #1 Tons of young people on the app. Young people who will soon have their student debt forgiven. If they make some money they can put it (gamble it) somewhere. How about an already open account!! #2 If they seem responsible, money will be past down to them with generational wealth. Uncle Joe died and left them $5,000. Grandma died and left them $50,000. Mom died and left them $200,000...Maybe a home!! #3 If Hood goes the way of Schwab and Fidelity they will need to open some offices around key locations near large cities. Do the hand holding thing, while the youths money get invested rather than gambled. #4 Is HOOD a buyout candidate? I don't know who...Some one from left field (Apple, Walmart, Amazon, Google, big brokers). Having so many open accounts would/could be attractive to someone. Just my thoughts. Let the roasting begin!! PS The onsite office will need to have customer service people with purple hair, nose rings, and tons of unique tattoos!!
The inside day today would worry me a bit. I think it would probably retest the low into the $7-6's As far as HOOD's position as a broker, I don't see them being that special. THe big boys already offer commission free equity trades. Feel like a $10-15 stock at most to me.
Don't buy until it (at least) retests previous day high. Showing no sign of reversal currently. Example, If it trade 9.40 tomorrow, I would buy with a stop @ 8.70 Maybe 8.71 can support the price, But if it doesn't reverse around here ... Could potentially retest 6.80 It's cheap for a reason. It's not making any money.
Hood is loosing customers to more established discount brokers. How do I know? I know only purely anecdotally. They no longer have the cachet with the newest generation of investors
%% SOME \were buying HOOD @$80s\ ; + monthly lows which vary from $30s down to $10\ to $7s to 6s. $8.48 > $80s, for a trade. 8.48 maybe >, monthly low of $9.50.
It has been on a downtrend for a year. It will take years / decades /centuries (or never) for it to be on an uptrend. So if you want to long HOOD, look at it a few years, not a few hours, later.
Always hindsight in these situations. The trade was in the middle of the meltdown of a major crypto, with another major crypto taking a pass on buying them out!! With FTX (Fried) owning 7.5% of HOOD, it still is anyone's guess where this stock will land. What interest me are those young people with all those open accounts...