Robinhood Markets Stock Price and Forecast: Why is HOOD falling to 52-week low?

Robinhood (HOOD) stock continues to struggle after its zenith IPO spike last year. HOOD debuted on the stock market in a hype of publicity just as the meme stock mania was reaching a fever pitch. Robinhood shares were listed at $38, but soon surged up to $85 within the first week of trading. Since then, however, it has been a one way only track record with the stock collapsing to current levels and still falling further in Tuesday's premarket. As it stands at the time of writing, the stock is under $15.

Robinhood Stock News

Now just in case you are somehow unfamiliar with Robinhood, here is a quick recap. It operates a retail trading app that has proven hugely popular with a new breed of retail trader. The ease of use, especially in terms of call option explanation, saw a massive rise in the popularity of retail trading. The covid-enforced lockdown provided the perfect hot house of customers who had little else to do but trade the markets. Robinhood offers commission-free trading, meaning customers do not have to factor this into their consideration when trading with Robinhood. The customer growth went stratospheric during the lockdown as shown below.

Robinhood, number of customers, source: Statista.

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The explosion of interest in trading and the GameStop effect made Robinhood notorious. While customer numbers exploded, customer anger was stoked to a boiling point following the restriction in GameStop trading. 

This though did not stop a successful IPO in July 2021 with the price exploding from $30 to $85 in just four days of trading.

While the stock has fallen considerably since then, it has begun picking up attention this week as Bloomberg had an opinion piece entitled "Robinhood Has Become an Attractive Takeover Target". This naturally has seen interest in the stock spike, and it is back on the trending lists of sites such as StockTwits and WallStreetBets. We also note another story from Fox Business reporter Charles Gasparino. 

Robinhood Stock Forecast

The stock shows no signs of bottoming out despite the Relative Strength Index (RSI) having bottomed out in late December. The Moving Average Convergence Divergence (MACD) also crossed into a bullish signal around the same time. Both of these are reasonable signals, but this just shows that the price action is the number one indicator we have in techncial analysis. $14.80 is probably a small hope of support.

Robinhood chart, daily