Robinhood (HOOD) stock is giving traders whiplash today with its dramatic price swings. As of 1:41 PM EDT, the stock was trading at 0.74 (-0.79%). However, this simple figure belies the rollercoaster journey the stock has taken throughout the day.
The intraday chart shows the stock dipped at the 9:30 AM open to its session low of 95.70 within the first hour. Since hitting that peak, the stock has been in a gradual downtrend, giving back most of its early gains. This “spike-and-fade” pattern is often indicative of intense, speculative trading activity. The stock’s high Beta of 2.26 confirms its tendency to be more than twice as volatile as the broader market.
Should You Buy or Sell HOOD Stock Today?
The extreme volatility in HOOD stock makes it a high-risk play for any intraday trader.
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For the Bulls (Potential to Buy): Bullish traders might focus on the initial powerful rally from the low of $91.25 as a sign of strong underlying demand. The current bounce off the afternoon lows could be seen as an attempt to establish a new support level, offering a potential entry point for those betting on a recovery back toward the session highs.
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For the Bears (Potential to Sell): The failure to hold the morning’s high of73.98**, which may encourage bears to short the stock, believing it is overextended.
Conclusion: Extreme caution is advised. The stock is caught in a battle between aggressive buyers and profit-takers. The direction for the rest of the day will likely depend on whether it can sustain its current bounce or if sellers push it back towards the daily lows.
Analyst Opinion
Robinhood’s chart today is a textbook example of a high-volatility growth stock in action. The price is trading near its 52-week high, a natural point for some investors to take profits. The fact that the current stock price is significantly above the consensus 1-year analyst target suggests that investor expectations have run ahead of Wall Street’s, creating a tense dynamic that can lead to sharp price movements in either direction. The stock is profitable, with a P/E ratio of 53.49, but this valuation already prices in significant future growth, making it vulnerable to pullbacks.
Frequently Asked Questions (FAQ)
1. What caused the wild swings in HOOD stock today?
The chart shows a sharp sell-off at the open, followed by an immediate and powerful rally to a new daily high, and then a subsequent decline. This “spike-and-fade” pattern indicates intense trading activity and a conflict between strong buying and selling pressure.
2. What are the key price levels for HOOD to watch today?
The key support level is the day’s low at $91.25. The primary resistance is the day’s high at $95.70.
3. Is Robinhood a risky stock to trade?
Yes. Its Beta of 2.26 indicates it is significantly more volatile than the overall market. The wide intraday trading range today further confirms its high-risk nature.
4. How does HOOD’s current price compare to what analysts expect?
The current price of approximately $93.66 is substantially higher than the 1-year target estimate of $73.98 shown in the image. This suggests the stock is trading at a premium to analyst consensus.
5. Is Robinhood a profitable company?
Yes. According to the data provided, Robinhood has a positive trailing twelve-month (TTM) EPS of $1.75 and a P/E ratio of 53.49.
6. What is the 52-week trading range for HOOD stock?
The 52-week range is from $13.98 to $100.88. The stock is currently trading towards the upper end of this range.
