Positive outlook for Robinhood
Updated
█ Robinhood is a true leader of the investing world holding the title of the first company to introduce the following services: commission free trading, trading free of flat rate fees, and fractional share trading. The main service that sets Robinhood apart from the rest of the blue chip stock brokerages on Wall Street is the fact it truly offers free stock option trading with zero commission and zero per contract flat rate fees, a feature no other brokerage offers (most charge a minimum $.65 per contract flat rate fee).
█ Lets take a look at the capacity Robinhood has to grow: they recently introduced IRA accounts that should provide folks with a more secure long term sense of responsibility as they appeal to Robinhood for business, but I believe Robinhood has yet to truly gain favor in the investing world because they still don't provide the service of short selling stocks/securities. As soon as Robinhood is able to increase the threshold of their margin capabilities to offer short selling accounts to experienced traders on Wall Street they will be given the approval they've desperately been waiting for; and even more exciting for tradingview users once Robinhood offers short selling their trading platform will be compatible to integrate into the Tradingview environment as another one of its featured brokers. In my opinion the outlook of offering a short selling service paired with the possibility of integrating its compatibility with Tradingview places Robinhood in the spotlight for all the right reasons (personally I'd love to trade on Robinhood right from my tradingview chart).
█ (Q) If Robinhood is really that great then why isn't it doing well already? (A) I believe one of the major downturns for Robinhood's profits was its promotional program that offered new users free stock that then coupled with the disastrous timing of Covid-19 to exponentially dole out an unanticipated amount of free products to new users due to the unprecedented increase in digital networking created by lockdowns and folks being homebound; all leading to a few terrible quarters.
█ (Q) How can Robinhood turn things around over night? (A) Obviously they have to stop their promotional give aways, offer short selling to appeal and compete with Wall Street professionals, and integrate with Tradingview as a featured broker. Now many people may underscore the importance of gaining the approval of trading professionals on Wall Street because Robinhood seems to target low capital investors from the rest of society but no one looks up to and respects the opinion of the pro's more than the fans sitting in the stand; meaning if the best traders on Wall Street give Robinhood a thumbs up approval everyone looking up to them for guidance will as well (that includes all the folks that have never traded or stepped foot in the world of finance before).
█ Technical Analysis: I haven't drawn much on the chart but it can get a little confusing.
█ Thank you for reading, if you're looking for more on Robinhood there's plenty of material on the web that's readily available such as the forecast from Tipranks below:
https://www.tipranks.com/stocks/hood/forecast
█ Lets take a look at the capacity Robinhood has to grow: they recently introduced IRA accounts that should provide folks with a more secure long term sense of responsibility as they appeal to Robinhood for business, but I believe Robinhood has yet to truly gain favor in the investing world because they still don't provide the service of short selling stocks/securities. As soon as Robinhood is able to increase the threshold of their margin capabilities to offer short selling accounts to experienced traders on Wall Street they will be given the approval they've desperately been waiting for; and even more exciting for tradingview users once Robinhood offers short selling their trading platform will be compatible to integrate into the Tradingview environment as another one of its featured brokers. In my opinion the outlook of offering a short selling service paired with the possibility of integrating its compatibility with Tradingview places Robinhood in the spotlight for all the right reasons (personally I'd love to trade on Robinhood right from my tradingview chart).
█ (Q) If Robinhood is really that great then why isn't it doing well already? (A) I believe one of the major downturns for Robinhood's profits was its promotional program that offered new users free stock that then coupled with the disastrous timing of Covid-19 to exponentially dole out an unanticipated amount of free products to new users due to the unprecedented increase in digital networking created by lockdowns and folks being homebound; all leading to a few terrible quarters.
█ (Q) How can Robinhood turn things around over night? (A) Obviously they have to stop their promotional give aways, offer short selling to appeal and compete with Wall Street professionals, and integrate with Tradingview as a featured broker. Now many people may underscore the importance of gaining the approval of trading professionals on Wall Street because Robinhood seems to target low capital investors from the rest of society but no one looks up to and respects the opinion of the pro's more than the fans sitting in the stand; meaning if the best traders on Wall Street give Robinhood a thumbs up approval everyone looking up to them for guidance will as well (that includes all the folks that have never traded or stepped foot in the world of finance before).
█ Technical Analysis: I haven't drawn much on the chart but it can get a little confusing.
- I've labeled a few price points to keep in mind as Robinhood begins to turn into a raging bull, those are drawn in white and indicate typical values that profits are likely to be taken at.
- A linear regression channel is used to highlight the current trend, I colored the top of the channel red to represent potential resistance values and the bottom of the channel green to represent potential support values.
- The indicator below is provided to help support my thesis of bullish development as it's forming a bullish ascending triangle; and the signal/alert for a bullish ascending triangle is to simply anticipate the breakout as soon as resistance is broken. To be clear, as soon as the indicator breaks its resistance value and turns it into support the stock is expected to be in a bullish trend breaking out.
█ Thank you for reading, if you're looking for more on Robinhood there's plenty of material on the web that's readily available such as the forecast from Tipranks below:
https://www.tipranks.com/stocks/hood/forecast
Note
"I've noticed over the past three days the market has been trading Robinhood the same way it's trading the S&P-500. Hopefully folks begin to take a more personalized look at the company instead of throwing it on their technical radar because Robinhood isn't your run of the mill penny stock (stock trading below $10), it actually has a highly advanced business." My thoughts: people may be skeptical about giving Robinhood any money in the fear they will turn around and give it away in more free promotions to serve as a marketing campaign instead of to actually develop the business.
█ (Q) What is the significance of a stock trading the same as the index?
Note
The new SEC ruling is a poor decision in regulation because order fill pricing can already be controlled on the user end with limit orders and as such threatens the only business in the market that truly offers unprejudiced opportunity to the outsiders with commission free and flat rate fee free trading. I hope Robinhood has a way to keep offering commission free trading, specifically commission free and flat rate fee free option trading. thedeepdive.ca/secs-adverse-decision-on-payment-for-order-flow-negatively-impacts-robinhood/?fbclid=IwAR37tQ6IIbOdKyPQA93Mk7iq5ulFDQfjwNzz1wgqWkqEjbcbeWORMqucnM8Note
It looks like Robinhood is going to sell with the S&P500, I'm waiting to place an entry until it either breaks free from the S&P500 or the S&P500 finds a bottom, although the latter may be a while.Note
The candles/wave between SPY and HOOD are too similar to buy Robinhood stock while SPY is in a downturn. Note
.. "and Robinhood isn't even apart of the S&P500, go figure!"Note
News: FTX shares of Robinhood reuters.com/legal/ftx-opposes-blockfis-claim-bankman-frieds-robinhood-shares-2022-12-22/Note
News: FTX shares of Robinhood nypost.com/2022/12/23/sam-bankman-fried-is-fighting-to-keep-450m-stake-in-robinhood/Note
News: FTX shares of Robinhood reuters.com/business/finance/us-doj-process-seizing-robinhood-shares-tied-bankman-fried-2023-01-04/Note
(I can't find a source that has the exact FTX share price) Estimate: Note
News: FTX shares of Robinhood coindesk.com/policy/2023/01/09/robinhood-shares-worth-nearly-500m-seized-in-ftx-case/Note
News: Robinhood retirement feature yahoo.com/now/wait-list-over-robinhood-retirement-140000075.htmlNote
News: FTX shares of Robinhood cnbc.com/2023/02/08/robinhood-plans-to-buy-back-sam-bankman-frieds-578-million-stake.htmlNote
News: Robinhood wins lawsuit reuters.com/business/finance/robinhood-wins-dismissal-lawsuit-over-2021-ipo-2023-02-10/Note
Optimistic Earnings update: "Hi folks, I've read some of the bearish news conveying the pessimism about the recent earnings report for Robinhood, but I tend to disagree with their outlook (seekingalpha.com/article/4578186-robinhood-bearish-yet-another-miserable-quarter). For two simple reasons: (1) the gravity of Robinhood's performance is not held in the balance by one financial quarter,(2) the trend of Robinhood's EPS & Revenues are both bullish and have been for the past 4-7 quarters boasting continuous improvement quarter over quarter.
The bottom-line: yes the estimates came up short, but the companies performance is still on track to better figures and that counts the most in my book.
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