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This idea rewarded the company: according to Business of Apps, Robinhood had almost 16 million users in 2022.
With the app Robinhood, launched by the company, people can trade stocks, options, cryptocurrencies and ETFs. Users can start with $1, and trade without commissions. Moreover, Robinhood introduced services to build retirement plans.
Robinhood went public in 2021 on the Nasdaq, under the symbol HOOD and after a series of funding rounds that earned the company hundreds of millions of dollars.
The company hasn’t always made headlines for positive reasons, and news often affected the price of the Robinhood Markets Inc. stock – HOOD – as you’ll discover throughout this article.
We’ll analyse the main HOOD forecasts for 2023, and make an analysis of historical prices to better understand how the stock may perform in the future.
Contents
Robinhood (HOOD) Stock Forecast 2023
At the time of writing, the price of HOOD is $9.98. The stock seems to be recovering from a steep downtrend that developed in the past few years – as we will see later.
The price of this stock is usually not very high, perfectly fitting also traders and investors who don’t want or can’t invest large budgets. And it seems that the situation won’t change in the near future. Most predictions see the price of HOOD moving within a range that goes from $8 – the lowest forecasts – and $11 – the median forecast.
Under this perspective, HOOD seems currently fairly priced, also considering its historical prices.
Most optimistic forecasts see the price of HOOD at $25 by the end of the year. But where did these forecasts come from? Let’s do an analysis of the price of the Robinhood stock from 2017.
Robinhood (HOOD) Stock 2022
2022 was a very complicated year for HOOD, since the stock went through the final phase of its steep downtrend.
2022 started on January 3 for this stock, since it was the first Monday available for trading. Despite it being a Monday, the stock did well that day, closing at $18.44 (+3.83% if compared to the previous trading day).
Despite the launch of new products and services – like the personalised trade generator and the crypto wallet – and a new executive that brought the company closer to old-school traders – Steve Quirk – the downtrend didn’t stop.
The first earnings and revenue report shared by the company on January 22 proved traders and investors right. The company missed expectations by almost 39% for what concerns earnings, and by over 3% for revenue. But at the end of January, good news made the price recover.
On January 27, a US court dismissed a lawsuit that initially accused the platform of allegedly restricting trading activity causing, according to users, the loss of billions of dollars.
The positive outcome for the company is evident on January 28, with a peak in buying volume and a candlestick with almost no tails that made clear the positive sentiment surrounding the stock.
The rebound didn’t last long, and HOOD hit a resistance level at $16.5 on March 29, after the company announced extended trading hours.
The downtrend recovered, and traders were proved right throughout the whole year.
Robinhood (HOOD) Stock 2021
As we said, Robinhood (HOOD) went public in 2021. To be more precise, the company launched its IPO on July 28 2021, and it went public the day after.
During the IPO (Initial Public Offering), the shares of the fintech company were sold for $38. The day after, the company slightly missed expectations. The first day of trading closed with a negative candlestick at $34.82.
But traders took advantage of this and bought the dip. On Jul 30, the price of HOOD started rising. On August 3, the media started referring to HOOD like the “meme of memes”, since retail investors that used to popularise certain stocks on social media drove the price of HOOD up.
The price of HOOD reached a high of $85, and closed at $70.39 – an impressive +50.41% compared to the previous trading day.
On August 4, Jim Cramer – host of CNBC’s Mad Money – shared his thoughts on Robinhood, and advised people to sell. According to Cramer, Robinhood was just another GameStop.
The day after, on August 5, the price of HOOD started dropping: this drop occurred after the announcement that some shareholders were about to sell almost 98 million shares.
The stock continued moving between a support level slightly above $39 and a resistance level at about $48 until the end of October.
The earnings and revenue report shared by the company definitely led the price down until the end of the year because of a performance far below expectations.
The surprise – that is, the difference between the expectations of analysts and data reported – amounted to a dramatic -160.12% for what concerns earnings, and to -16.51% for what concerns revenue.
HOOD closed at $17.76 on December 21 2021 – 53.26% lower than the IPO price.
How to Invest in Robinhood Markets Inc. Stocks
If you’re looking to invest in Robinhood Markets Inc. stocks, eToro is an excellent choice for both beginners and professional traders. As one of the best online brokers available, eToro has built a solid reputation for its user-friendly platform and wide range of investment options. In this mini guide, we will walk you through the process of opening an account on eToro and investing in Robinhood Markets Inc.
Step 1: Open an Account
To begin, you’ll need to create an account on eToro. Visit the eToro homepage (https://www.etoro.com/) and click the “Join Now” or “Sign Up” button to access the registration page. You will be prompted to enter your personal information, such as your name, email address, and phone number. After completing the required fields, click “Create Account” to proceed.
For a visual reference, please refer to the following link, which provides images of the homepage and registration page: https://www.etoro.com/customer-service/how-to-open-etoro-account/
Step 2: Upload ID
Next, you must verify your identity by uploading a proof of identification. This can be a government-issued ID, such as a driver’s license or passport. On the eToro platform, navigate to the verification section and follow the prompts to upload a clear, legible copy of your identification document.
For an image of the proof of identity upload page, visit this link: https://www.etoro.com/customer-service/how-to-open-etoro-account/
Step 3: Make a Deposit
Once your account has been verified, you’ll need to fund it before you can start trading. To do this, log in to your eToro account and click the “Deposit Funds” button. You’ll be directed to a page where you can select your preferred payment method and enter the desired deposit amount. Follow the on-screen instructions to complete the deposit process.
For more information on depositing funds, visit this link: https://www.etoro.com/customer-service/deposit-faq/
Step 4: Search for HOOD
Now that your account is funded, you’re ready to search for Robinhood Markets Inc. stocks. On the eToro platform, locate the main search bar and type in “Robinhood Markets Inc.” or the stock symbol “HOOD”. The platform will display the relevant stock for you to review and analyze.
For more information on using the eToro discovery tool, visit this link: https://www.etoro.com/discover
Step 5: Buy HOOD
To purchase Robinhood Markets Inc. stocks, click on the stock listing in the search results. You will be directed to the stock’s page, where you can review its performance, statistics, and other relevant information. When you’re ready to buy, click the “Trade” button and enter the desired amount or number of shares you wish to purchase. Confirm your order, and you’ll have successfully invested in Robinhood Markets Inc. stocks on eToro.
For a visual guide on buying stocks on eToro, please refer to the platform images with arrows pointing to the “Trade” button.
Conclusion
Among the fintech companies, Robinhood Markets Inc. gives traders and investors the opportunity to trade one of the most recent and popular stocks available.
The company was founded in 2013, and went public in 2021. We have only two full years to analyse for our historical price analysis, and it’s very likely that the stock is still stabilising.
Actually, the price is not very different compared to one year ago, and also forecasts for 2023 are not very volatile, and in line with the current price – slightly below $10.
FAQ
When was Robinhood founded?
The company was founded in 2013, but people need to wait for two years before seeing the launch of the Robinhood application.
When did Robinhood go public?
Robinhood Markets Inc went public in 2021 – on July 29, one day after the IPO.
Is it good to invest in Robinhood stock (HOOD)?
Generally speaking, HOOD can be an interesting investment – especially for those interested in fintech stocks. Moreover, the price of the stock doesn’t seem to be too high at the moment.
What’s the future of Robinhood stock (HOOD)?
The forecasts of most analysts are not very volatile, and quite in line with the current price of the stock. In fact, forecasts move between a low estimate of $8 and a median estimate of $11 – about $1 dollar more than the current price. The high estimate sees the price of HOOD at $25 by the end of 2023.
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