Why Should Robinhood Be Avoided This Month?

Robinhood stock is up 2.39% today and is trading at $41.91. The cost of HOOD stock has not been stable for a month. On September 20, the stock fell to $40.12. Three days later, it rose to $47.16. By the beginning of this month, the stock price again fell to $40.73. Robinhood offers brokerage services to people who want to buy and sell digital currencies. Robinhood started as an online brokerage company serving conventional assets, including stocks and options contracts, and remains incredibly successful in this area.

But Robinhood has faced a number of problems like its gaming trading app cause risky behavior among millions of young users. This year, the company has made a huge turnaround by focusing on the cryptocurrency markets. While cryptocurrencies account for only 22% of Robinhood’s client assets, they currently account for more than 52% of total transaction revenue. This shows that Robinhood’s young investor base trades cryptocurrencies more often than stocks, and they pay higher fees for it. Robinhood will probably be able to build a long-term business on what is ultimately a vehicle for speculation.