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.