Jim Cramer on Robinhood: “I Think It Still Has Room to Go Down, Even as I Think It’s a Very Good Company”

Jim Cramer gave top insight on Robinhood Markets, Inc. (NYSE:HOOD), sharing a game plan of what to buy, sell, and hold right now. A caller asked how they can tell whether to dump the stock or hold out. Cramer replied:

Okay, well, that’s a great question. Remember, we don’t care where you bought it. We care where it’s going to. Robinhood has got a big buyback now, but it sells at 28 times earnings when the rest of the brokers sell at a much lower multiple. For instance, Morgan Stanley, which is actually a very fast-growing company, it sells at 14 times earnings. I know Robinhood is fast-growing, but at the same time, it doesn’t have the same kind of sticky money that Morgan Stanley has. So I think it still has room to go down, even as I think it’s a very good company. But like I said, nothing’s personal at this point.

A stock market chart. Photo by Arturo A on Pexels

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial platform that allows users to trade stocks, ETFs, options, cryptocurrencies, and other assets.

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