5 Reddit Stocks That Are Getting Crushed

2. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 24

Decline in Share Price Over Past Six Months: 67.76%    

Robinhood Markets, Inc. (NASDAQ:HOOD) owns and runs a financial services platform. The company is reportedly working on the launch of retirement accounts in a bid to challenge traditional brokerages. As part of this strategy, the application will soon support traditional IRA, Roth IRA, and pension accounts. The firm also recently launched a zero-fee cash card allowing users to get rewarded for investing and spending. The initiatives have failed to bring significant respite to the shares that have been sliding in the past few weeks 

On March 30, JPMorgan analyst Kenneth Worthington kept an Underweight rating on Robinhood Markets, Inc. (NASDAQ: HOOD) with a price target of $11, noting that “a market selloff had hobbled accounts growth and activity in what is typically the seasonally strongest quarter of the year”. 

At the end of the fourth quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Robinhood Markets, Inc. (NASDAQ: HOOD), up from 20 in the previous quarter worth $4.6 billion.

In its Q4 2021 investor letter, Claret Asset Management, an asset management firm, highlighted a few stocks and Robinhood Markets, Inc. (NASDAQ: HOOD) was one of them. Here is what the fund said:

“Robinhood Markets, Inc. (NASDAQ: HOOD) went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that Robinhood Markets, Inc. (NASDAQ: HOOD) does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, Robinhood Markets, Inc. (NASDAQ: HOOD) is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”