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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.
Table of 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 forecast – 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 personalized 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 concerned 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 as 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.
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 analyze for our historical price analysis, and it’s very likely that the stock is still stabilizing.
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.
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.
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