HOOD stock price is dropping today, March 5, mirroring the performance of the broader stock market. It dropped by 4%, erasing some of the gains made on Wednesday. Still, the stock could be on the verge of a bullish breakout to $100 after launching new products.
Robinhood Stock Pares Gains After Key Product Launches
HOOD stock pulled back, a day after the company made a series of announcements as it continues to diversify its business.
The most notable product launch was a new platinum card that aims to compete with similar products by companies like JPMorgan and American Express. It will have an annual fee of $695 a year, and according to the management, it will have perks worth $3,000 a year.
The new platinum card will also have higher limits than its free gold card that is used by thousands of its customers.
In addition, the company launched a new service that will help customers receive dividends from major American companies up to one month before the official payment date.
Robinhood also launched Robinhood Families, an account tailored towards families. It will allow these members to observe the performance of their investments.
Robinhood has been launching new products in the past few months to diversify its business. Its launched a prediction marketplace, entering in an industry that is handling billions of dollars a month in volume.
The company also launched tokenized stocks using the Arbitrum technology. The stocks will make it easier to expand globally by offering American shares in countries where it does not offer the service.
Additionally, Robinhood expanded its crypto business by acquiring BitStamp, a mid-tier crypto exchange. Crypto has now become a major part of its business.
Analysts tracking the company have a bullish outlook on the company, noting that it has become a financial supermarket with high usage among young people. Its valuation metrics have also dipped recently, with the forward price-to-earnings (PE) falling to 27.
The average HOOD stock price forecast among analysts is $130, much higher than the current $79. Most of the bullish analysts are from companies like JMP Securities, Bank of America, and Mizuho. Cathie Wood’s Ark Invest has continued to accumulate Robinhood shares this year.
HOOD Stock Price Prediction: Technical Analysis
Robinhood stock price has been in a freefall since October last year, when it soared to a record high of $152 after being added to the S&P 500 Index. This retreat has coincided with the ongoing crypto market crash that has affected most coins.
There are now signs that the stock is bottoming as the freefall has stalled at the 61.8% Fibonacci Retracement level. Also, the Average True Range indicator has pointed downward, a sign that the downtrend is losing momentum.
Most notably, the stock formed an island reversal pattern, which happened after it made a big drop following the recent earnings.
HOOD StockIf this pattern works out, the Robinhood stock price will likely bounce back and possibly retest the psychological level at $100. The bullish forecast will be canceled if it drops below the lower side of the island reversal pattern at $70.
Source: https://coingape.com/markets/hood-stock-targets-100-as-robinhood-unveils-platinum-card-and-advance-dividend-feature/
