Apr 8, 2022 - Economy
Robinhood faces renewed concerns as retail engagement fades
Add Axios as your preferred source to
see more of our stories on Google.
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.
