Robinhood faces renewed concerns as retail engagement fades

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.