Bloomberg Intelligence senior fintech industry analyst Julie Chariell shared a similar view. She said, “This spike in the share price doesn’t change our view of shaky fundamentals and compounds the concern about order-flow payment revenue through 2022, after a 34% drop in 2Q and a crypto-trading bump that’s unlikely to repeat in 3Q. Our analysis still points to a mid-$30 baseline share price.”
On Thursday, Robinhood shareholders’ disclosures to sell their stakes in the company resulted in a 27.59% decline in its stock price. HOOD shares closed at $50.97 each.
Some of the selling shareholders include New Enterprise Associates, Andreessen Horowitz, Iconiq Capital, Institutional Venture Partners, and Ribbit Capital.
Commenting on the movement of Robinhood’s stock price, Ihor Dusaniwsky of S3 Partners told Yahoo Finance that short covering is not a factor. According to him, “Until HOOD stock borrow availability grows and the overall amount of HOOD shares shorted becomes relevant – buying and selling by long shareholders is the reason behind HOOD’s price moves.”
