Could Robinhood Stock Help You Retire a Millionaire?
Robinhood Markets (NASDAQ: HOOD) has introduced stock trading to a new generation. As of March 2021, over 18 million users had set up funded accounts on its platform, up from 7.2 million in March 2020. The platform's increasing popularity helped to drive revenue growth and eventually led to Robinhood's recent initial public offering (IPO) at $38 per share. However, after reaching an intraday high of $85 per share in the first few days of trading, it has fallen back to the mid-$50s per share range. The question now is whether this sell-off is a warning to get out, or an opportunity for Robinhood to make risk-tolerant investors millionaires?
Indeed, Robinhood has brought stock investing to a new type of individual investor. Traditional online brokerages such as Charles Schwab used to charge a commission for trades. However, Robinhood grew in popularity by offering commission-free trades, inducing brokerages like Schwab to follow suit. It also has advanced the practice of fractional-share sales. This helps to make a stock such as Amazon (NASDAQ: AMZN), which currently sells for just under $3,400 per share, accessible to small investors, by allowing them to buy just a part of a share at a more affordable price.
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Source Fool.com
