Is it time to wave farewell to the meme-stock phenomenon and its attendant gains? J.P. Morgan’s Ken Worthington thinks so and this could have implications for meme-stock enabler Robinhood (HOOD). “We think that the easy money made by leveraged-long trades in the meme-stock era is over,” said Worthington. “In the near term this could mean both slower volumes and lower margin balances hurting already negative profitability.” Furthermore, for the last three quarters through 1Q22, investors on the platform have not only generated negative returns but have also underperformed the S&P 500 by a significant margin. Worthington thinks this presents even more of a challenge for the trading platform.
https://www.tipranks.com/news/article/j-p-morgan-sees-doom-and-gloom-in-robinhood-stock?utm_source=advfn.com&utm_medium=referral