Robinhood Markets Inc (NASDAQ: HOOD) has been the discuss of the market this yr because it was on the centre of the retail buying and selling frenzy that gained unprecedented traction in current months. Now that the fintech firm has gone public, the talk is a bit totally different, with analysts and traders questioning if Robinhood itself is a meme inventory?
Robinhood debuted on Nasdaq at $38 a share final Thursday. After a slide to round $34, the Reddit neighborhood returned with the most recent present of its power that pushed the inventory to over $70 yesterday. On the time of writing, HOOD is exchanging fingers at $62, with Hightower’s Stephanie Hyperlink cautioning towards it, saying, ‘it’s tremendous costly’.
Joe Terranova’s remarks on CNBC’s “Squawk Field”
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Whereas the retail exercise is perhaps a superb factor within the short-term, Vitrus Funding Companions’ Joe Terranova just isn’t positive if Robinhood would need to be a meme inventory in the long term. In his interview with CNBC’s “Squawk Box”, he mentioned:
“I don’t suppose they need to be a meme inventory as a result of that may discourage institutional traders. It’ll take the eye away from the true fundamentals of the corporate and depart all of it concerning the volatility.”
What Terranova thinks Robinhood ought to do
Referring to Wednesday’s rally, Terranova famous that choices traded at a degree that was final seen with Fb when it went public in 2012. In Robinhood’s case, nonetheless, it was pushed by the retail neighborhood.
“In the event that they don’t need to be a meme inventory, the speedy technique needs to be determining methods to boost extra capital, making the most of the worth appreciation whether or not that’s by a secondary or different type of elevating capital.”
Such “prudent administration”, Terranova added, may not lead to a decline in consumer base both. Additionally on Thursday, Wolfe Analysis’s Steven Chubak mentioned on CNBC’s “TechCheck” that “Robinhood is uninvestable”.
67% of retail CFD accounts lose cash