What's Going On With Robinhood Stock?

Robinhood Markets, Inc. HOOD shares are trading higher Monday. The stock may be rebounding after falling Friday on the announcement co-founder Baiju Bhatt will step down as Chief Creative Officer.

The Details:

The stock dipped after the company announced the departure of Bhatt on Friday, but recovered Monday, closing up by more than 4%. 

“Since I helped found this company in 2013, Robinhood has been my life. For more than a decade, I have worked tirelessly to drive our mission to democratize the financial services industry for the betterment of society,” said Baiju Bhatt, Chief Creative Officer and Co-Founder of Robinhood. 

“It has been a privilege to work with some of the most dedicated, creative, and innovative people who have delivered daily for our customers and shareholders. I look forward to remaining a member of the Robinhood Board of Directors and continuing to support our mission. I will have more to share about my next steps soon but know the future has never been so bright,” Bhatt added. 

According to data from Benzinga Pro, shares are trading well-above the stock’s 50-day moving average of $13.84 and near its 52-week high of $19.41.

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HOOD Stock Forecast in 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Robinhood Markets, over the past 5 years, it's annualized stock performance is -12.07%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $10.01.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

HOOD Price Action: According to Benzinga Pro, Robinhood shares closed up 4.26% at $19.08 on Monday.

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