Betting on retail investors worked last year, but it’s a different story now.
Driving the news: Goldman Sachs joined the bearish outlook party on Robinhood today as analysts downgraded the stock from neutral to sell.
- The stock is down 84% from its record high last August.
What they’re saying: "[F]ading retail engagement, particularly among [Robinhood's] lower end consumer customer base, could represent further headwinds," the Goldman team wrote in a note.
- Another challenge: A decline in "broader industry crypto trading volumes."
By the numbers: The number of monthly active users on the app declined 8% in the last quarter of 2021 from the previous quarter.