![]() Quirk said Robinhood had no plans to license its index to providers of exchange-traded funds and there is no direct way to invest in the index or bet against it. “They like to know that like-minded people are considering similar investments," he said. “We just wanted to make sure that their behavior speaks for itself, so people can look at the actual behaviors and determine how they’re doing."Īnother reason why Robinhood launched the index was to provide its customers with insight into what their fellow investors are doing, according to Mr. “There is an antiquated narrative that says retail buys at the top and sells at the bottom," Mr. One of Robinhood’s aims in launching the index was to push back against public perceptions that its customers are the dumb money in the stock market, Robinhood Chief Brokerage Officer Steve Quirk said in an interview. Robinhood plans to update the composition of its new index monthly. The new units trade under the ticker “APE" and form the ninth-biggest component of the index. 3 spot-if the movie chain hadn’t issued preferred equity units last month, effectively creating two ways for investors to hold AMC. Robinhood said AMC would have been ranked even higher-in the No. Stocks in the index are weighted by what Robinhood calls “conviction," defined as the percentage of assets in a customer’s portfolio devoted to that stock. Initially, the biggest five stocks in the index are Tesla Inc., Apple Inc., Inc., Ford Motor Co. ![]() Robinhood’s new index shows that its users favor a mix of meme stocks and more conventional investments. Last year many customers used its app to pile into volatile meme stocks such as AMC Entertainment Holdings Inc. The company’s popular trading app played a key role in bringing an influx of investors into the market during the Covid-19 pandemic.Ĭritics-including a mix of regulators, financial watchdog groups and Wall Street veterans-say Robinhood makes it too easy for newbies to pile into risky bets. Such an index could be of interest to financial professionals who monitor the activities of small investors as one of the underlying factors behind stock-market moves. It earns transaction-based revenues from routing user orders for options, equities, and cryptocurrencies to market makers when a routed order is executed.The brokerage firm’s new “Robinhood Investor Index," unveiled Friday, is designed to track the performance of the 100 investments most popular among its user base. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fractional shares, recurring investments, and IPO Access. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Robinhood Markets Inc is creating a modern financial services platform. Robinhood Markets (HOOD) Company Description: ![]() Begin your TipRanks Premium journey today. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. This means that over the past quarter there has been an increase of insiders selling their shares of HOOD in relation to earlier this year. See today’s best-performing stocks on TipRanks >īased on the recent corporate insider activity of 127 insiders, corporate insider sentiment is negative on the stock. ![]() In another report released on September 28, DBS also maintained a Hold rating on the stock with a $11.00 price target. Given all these factors, Christopher Allen prefers to maintain a cautious stance, hence the Hold rating for Robinhood Markets. Furthermore, the financial outlook reveals that Robinhood’s equity volumes may encounter challenges in the near-term, despite a positive outlook for options activity in the long run. This situation has negatively impacted the company’s earnings per share (EPS) estimates for the third quarter. The Hold rating also factors in Robinhood’s recent $100 million expense accrual related to legal and regulatory issues. Additionally, Robinhood’s trading earnings are expected to reflect a somewhat subdued environment. Despite seeing an increase in Gold sweep balances, which positively impacts the company’s Net Interest Income (NII), the Monthly Active User (MAU) growth remains relatively stagnant. A key consideration is the mixed trading environment that Robinhood currently operates within. The associated price target is $12.00.Ĭhristopher Allen’s Hold rating for Robinhood Markets is influenced by a variety of factors. Christopher Allen, an analyst from Citi, reiterated the Hold rating on Robinhood Markets ( HOOD – Research Report).
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