Three Undervalued Tech Stocks to Consider for Long-Term Investments: Robinhood
The shares
of Robinhood, a popular financial service company, are trading at 80% below
2021 highs. The reason for such a decline is the drop in trading activity that
affects financials of the company. At this point it is Important to keep sound
judgement and remember that the company has long-term, upside bullish drivers.
The service
is very popular among millennials and zoomers who will, in time, increase their
investments while “traditional” brokers will probably not be able to attract their
attention. Robinhood is planning to add new services to boost monetisation as
the company is planning to introduce pension savings accounts that pay decreased
churn rate. The company wants to allow its clients to lease their funds to open
short positions.
The company
has increased its client base by 0.3 to 22.7 million active users in the Q4
2021. Customers churn rate dropped by 19% while customers’ deposits rose by 93%
to $4.4 billion. However, the figure is 32% lower than it was in Q4 2020. The
company’s net profit grew by 14% year-over-year to $363 million. While
“options” and “stocks” segments generate stable income for the company’s cryptocurrency
section which is struggling. Customers’ deposits in this section were at $233
million in Q2 2021, $51 million in Q3 2021, and $48 million in the last three
months of 2021. The company is certainly dependent on the market cycle and will
benefit as the rally resumes.