Cramer Says Buy Robinhood at $80 as Stock Down 24%
Robinhood shares dropped 24% last month and plunged 17% over two sessions after reporting weak options and crypto trading volumes. Cramer recommends buying the stock at around $80, doubling down at $70 based on its platform’s traction with young investors and potential growth in crypto.
1. Cramer Buy Recommendation
Jim Cramer stated he would purchase Robinhood at its current level near $80 and allocate even more at $70, calling the decision a "resounding yes" when asked if now is a good entry point. He emphasized focusing on future potential rather than past highs around $145.
2. Recent Stock Performance
Robinhood shares fell 24% over the past month, then dropped an additional 17% in two sessions following mid-February results that showed softer-than-expected options and crypto trading volumes. The stock has only partially recovered since that decline.
3. Long-Term Growth Drivers
Cramer highlighted the platform’s popularity among younger investors as a key advantage, noting its position in crypto and options trading and its expansion into prediction markets. He expressed increasing bullishness on crypto, suggesting a bottoming process may support a rally.
4. Risks and Competitor Comparison
Heavy reliance on crypto and options trading exposes Robinhood to volatility in those markets, while its push into prediction markets adds regulatory and adoption risks. Cramer mentioned SoFi as a preferred alternative for tech-focused financial services targeting a similar demographic.