Week 4 update: $Robinhood (HOOD.US)$ dropped sharply after earnings because it missed both EPS and revenue expectations, which caused a selloff of about 13%. After a strong rally before earnings, some pullback was expected, but the main question now is whether this is only a temporary dip or the start of a stronger downtrend.
In Week 3, I planned an exit level around $84, but I did not set it and the trade moved sharply lower, which taught me to use stronger risk control and more disciplined trade management in the future.
There are still some positive signs. Large investors such as Vanguard and BlackRock have continued adding shares, which shows some long term confidence in the company. Robinhood also has a $1.5 billion share buyback program, which may help support the stock. Since April has often been a weaker month for HOOD, while May through October can be stronger if trading activity improves. Still, risks remain because Robinhood depends heavily on retail trading activity, and this can slow down when the market becomes uncertain.