If any company has influenced stock trading in the 2020’s, it’s zero-commission investing platform Robinhood Markets (NASDAQ:HOOD). Folks who own HOOD stock aren’t just investors, really — they’re part of a revolution in the financial markets.
However, Robinhood has had some problems this year. For example, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler stated that an outright ban of payment for order flow (which is how Robinhood makes money) is “on the table.”
There’s also a lawsuit against Robinhood — or at least, there was a lawsuit until Robinhood recently scored a legal win. This could help to propel HOOD stock higher, but don’t expect a long-term rally based on just this one event.
If anything could benefit Robinhood and its shareholders in the coming months and years, it’s a greater acceptance of cryptocurrency. There’s one crypto coin in particular that’s gaining popularity quickly — and Robinhood can either give the people what they want or get left behind.
A Closer Look at HOOD Stock
Going back to the beginning, Robinhood went public on July 29 and priced its shares at $38 apiece. As it turned out, HOOD stock fell more than 8% on its first day of trading. It’s possible that this was an example of “buy the rumor, sell the news.”
Yet, that wasn’t the end of the story — not even close. The next thing you know, there was a mad rush to buy the shares and the short-sellers were running for the hills.
Astoundingly, HOOD stock soared to $85 on Aug. 4. It’s possible that Reddit users were involved in this rally — there was even a Reuters headline announcing, “Robinhood surges 65% on Reddit buzz.”
That run-up wasn’t meant to last forever, though. As the old saying goes, trees don’t just grow straight to the heavens.
This figurative tree fell hard and fast as HOOD stock lost 50% of its value in just a few weeks. By Nov. 24, the share price had declined to around $28.
A Suit Is Dismissed
Still, at least the shareholders can say that they’re in good company. By that, I mean there’s a famous fund that recently loaded up on Robinhood shares. Chances are pretty good that you’ve heard of Cathie Wood and her company, Ark Invest.
Wood’s well-known fund, the ARK Innovation ETF (NYSEARCA:ARKK) reportedly purchased 233,353 shares of HOOD stock. So, if you’re a fan of Wood and/or her funds, this could motivate you to pick up a few Robinhood shares — though it shouldn’t be your only reason.
To help you out, I’ll give you another reason right now. Apparently, a federal judge just dismissed a major lawsuit against Robinhood Markets. This lawsuit accused Robinhood of colluding with Citadel Securities to prevent investors from buying so-called “meme stocks.”
Give This Dog a Chance
Apparently, U.S. District Judge Cecilia Antonaga of the Southern District of Florida didn’t feel that the evidence was strong enough to support the accusations of illegal collusion. Thus, Robinhood Markets dodged a bullet there.
It’s okay to celebrate this win, but the billion-dollar question is: what could prompt a turnaround in HOOD stock now?
A simple action would make this happen, I believe. And it’s something that would make Robinhood more competitive. Specifically, Robinhood should list the canine-themed altcoin Shiba Inu (CCC:SHIB-USD) on its exchange. Inexplicably, Robinhood crypto COO Christine Brown recently shot down the notion that Shiba Inu will be making an appearance on the platform anytime soon.
Meanwhile, AMC Entertainment (NYSE:AMC) CEO Adam Aron stated that the movie theater chain is exploring options for accepting Shiba Inu. Aron acknowledged the groundswell of support for Shiba Inu, saying, “There’s just been a tidal wave of inbound messaging to our company.”
Both of these companies should do the right thing and embrace the Shiba Inu community fully.
At least Aron seems to be giving Shiba Inu its due consideration. Robinhood’s executives should do so, as well.
The Bottom Line
What will it take to get the popular altcoin Shiba Inu listed on Robinhood?
It could benefit the cryptocurrency community, as well as investors in HOOD stock.
Ultimately, it’s up to Robinhood’s higher-ups to make this happen — and hopefully, they’ll soon heed the call and add Shiba Inu to the platform.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.