2 Big Reasons to Be Skeptical About the 269% Surge in Robinhood Stock Over the Past Year

Robinhood Markets (NASDAQ: HOOD) has sent investors on a rollercoaster ride since going public in 2021. Its stock listed at $38 per share, soared to a record high of $85, and then plunged by 91% to an all-time low of around $7 -- all in less than a year.Shareholders were bullish on Robinhood's ability to attract young, first-time investors to its trading platform, where they can buy and sell stocks, options, cryptocurrencies, and more. However, since many of those clients make risky short-term bets as opposed to long-term investments, they tend to flock to the platform when markets are rising, only to leave during challenging times (like in 2022).Trading activity is soaring right now thanks to the raging bull market in everything from stocks to cryptocurrencies. As a result, Robinhood stock is up by a whopping 269% over the past 12 months. However, there are two key reasons investors should be concerned.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool