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Up 74% YTD, is This Cathie Wood Stock Overvalued?

Up 74% YTD, is This Cathie Wood Stock Overvalued?
Robinhood Markets NASDAQ:HOOD stock, valued at $20 billion by market cap, is a key holding in fund manager Cathie Wood’s portfolio. HOOD accounts for roughly 4.9% of Wood's flagship Ark Innovation ETF AMEX:ARKK, making it the fund's No. 7 holding by weight. While shares of the trading platform have…

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Robinhood Markets, a stock valued at $20 billion by market cap and a key holding in fund manager Cathie Wood’s portfolio, has seen a 74.1% increase in shares year-to-date. Despite this, the stock is still down 73.9% from all-time highs. Robinhood recently reported strong Q1 results, with revenue of $618 million and earnings of $0.18 per share. The company also announced plans to acquire Bitstamp, a crypto exchange, for $200 million. Robinhood also initiated its first-ever stock buyback program, planning to repurchase shares worth $1 billion in the next three years. Analysts are divided on the stock, with the average target price for HOOD at $19.70, lower than the current trading price. However, with expected adjusted earnings of $0.51 per share in 2024, the stock is not considered overvalued.

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