We recently compiled a list of the 10 Stocks That Underperformed Last Week. In this article, we are going to take a look at where Robinhood Markets Inc. (NASDAQ:HOOD) stands against the other stocks.
Wall Street’s main indices ended in a bloodbath on Friday, as investors soured on a flurry of macroeconomic factors such as concerns over a slowing economy and a sticky inflation that tempered buying appetite.
Friday’s finish saw the Dow Jones decline by 1.69 percent, the S&P drop by 1.71 percent, and the tech-heavy Nasdaq nosedive by 2.20 percent.
Ten companies, in particular, were heavily hit, registering mostly double-digit losses on a week-on-week basis.
We have listed 10 names that performed poorly last week and detailed the reasons behind their declines. Please note that shares performances were based on the companies’ closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.
To come up with last week’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
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Robinhood Markets Inc. (NASDAQ:HOOD)
Robinhood Markets Inc. (NASDAQ:HOOD) dropped its share prices by 20.95 percent last week at $51.6 on Friday versus the $65.28 close on February 14 as investors appeared to have taken profits following the company’s all-time high, while also digesting news about a US court’s decision to seize worth $606 million of Robinhood Markets Inc. (NASDAQ:HOOD)’s shares from a bankrupt company’s CEO.
Last week, Robinhood Markets Inc. (NASDAQ:HOOD)’s share prices jumped to an all-time high of $63.8 following its stellar earnings performance last year, with its net income soaring by 2,953 percent to $916 million during the fourth quarter, and recording $1.4 billion in net income for the full year 2024, reversing a net loss of $541 million in 2023.
Sentiment, however, was quickly dampened by news that a US Court had seized worth $606 million of HOOD’s shares from Sam Bankman-Fried, CEO of now-bankrupt bank FTX, following his fraud conviction.
Robinhood Markets Inc. (NASDAQ:HOOD)’s shares were sold off for the entire trading week, as investors repositioned their portfolios to minimize risks from the news.
Overall HOOD ranks 5th on our list of the stocks that underperformed last week. While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as HOOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.