Robinhood suffers brutal weekly loss as bitcoin, AI stocks are hit hard
Omer Marques | Light Rocket | Getty Images
robinhood Shares have suffered a brutal weekly loss as trading in once-hot bitcoin and AI stocks lost momentum.
The stock on the popular brokerage platform is down 12.4% this week. The stock fell 10.1% on Thursday and rebounded 1% on Friday. November alone wiped out 27% of its market value.
The latest slide reflects a sharp reversal in the risk-hungry investing activity that Robinhood relies on. The company’s core business is closely tied to retail investors flocking to speculative corners of the market, particularly cryptocurrency and AI stocks.
These exchanges helped fuel a resurgence in Robinhood revenue and user engagement earlier this year as Bitcoin hit new highs and anything tied to AI soared. But the recent defeat of crypto and fast-growing tech stock leaders reveals Robinhood’s susceptibility to sentiment swings.
bitcoin It has fallen nearly 12% this week alone, falling to $80,548.09 on Friday, the lowest level since April. AI enabler shares Nvidia It’s down 6% this week.
