Robinhood is down by more than 80% from Peak!

Within no time Robinhood has further crashed to below $15 per share, IPO was at $30 and 52 week high of $85.

It’s market cap currently is hardly 12.5 Billion dollars ( 90000+ Crore in rupee terms). When one of the world leaders in fintech industry is trading at this valuation.

I find it astonishing how our Indian fintech companies are getting themselves at 3-4 billion dollars. :joy:

According to me, One thing is for sure - Either Robinhood is currently at steal deal type valuations or our Indian FIntech Companies are way too overpriced.

Which among is the following is true according to you? - If Possible, Share your rationale

  • Robinhood is undervalued
  • Indian FIntech Startups are overvalued
  • Both are True
  • Both are False

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“Robinhood got what it deserved” ~some random dude on wallstreetbets

80% seems bit overstretched though no? Wonder what is causing such distress in this company

Not really, take a look at other mid size Nasdaq companies, many are dropping. Nasdaq itself is down 14% from ATH.

Robinhood just performed a bit more bad.

I am not sure, how much big of an impact it created, but meme stocks are going down. So many of their users are in a loss, so it might could have impacted their future earning prospective.

Broking seems like a tough place to survive in the long run


who knows, every industry is changing. Maybe one day, stock market will be on blockchain.

Robinhood briefly became a penny stock as it touched 9.84$ after its results. Whats wrong with the business ? its market cap is $9.7 billion dollars now. what is causing the market to be so negative on robinhood ? @nithin any insights on this ?

A company with a $10 billion market cap can’t really be called a penny stock. :slight_smile: While a low price on the share is used to determine if it is a penny stock or not, it is usually referred to in conjunction with the market cap as well. So penny stocks are small companies that have a market cap of lesser than $200 million and whose stock price is <$10. RH’s market cap at $10Billion is way higher than the $200million.

But yeah that apart, the stock has dropped from a high of $85 to $10 (IPO was at $30). The reason is that they are not growing as fast as they were expected to. And that is the risk of investing in high growth high valuation startups that are yet to turn profitable. I had written about it earlier.



Markets are extremely cyclical businesses. It is shocking to see how smartest and some of the biggest businesses and investors don’t get this simple thing.

Recession has started. Layoffs are not just limited to broking business IT, ECommerce, Fintech, Edtech, Startups etc etc Just that our stock market is not reflecting it yet.