Jim Cramer Says “Robinhood May Be the Repository of Something That’s Become Toxic”

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks in focus on Jim Cramer’s game plan. Cramer discussed the company in light of recent price movement in Bitcoin, as he commented:

After the close, Robinhood reports. People are starting to get unnerved by how closely aligned this stock is with the price of Bitcoin. Even after today’s dramatic rebound, Bitcoin still feels like it’s lost its luster. The precipitous decline of the cryptocurrency occurring at the same time as a weakening dollar calls into question whether it’s a real store hold of value or even a hedge against inflation. We know nothing. We used to think it could be a currency. That’s obviously not going to happen. It’s a great speculative asset, I guess, until it started plummeting. So Robinhood may be the repository of something that’s become toxic, and I think a lot less dependable.

A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial platform that allows users to trade stocks, ETFs, options, cryptocurrencies, and other assets. During the January 28 episode, a caller noted that they see the company’s stock as a product that people stick with rather than a stock, and Cramer responded:

And you’re right. And you’re right. Robinhood has captured that young cohort. It’s captured the minds and imagination of young people as I try to do. And I can tell you they are on Robinhood, and it is a buy.

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Disclosure: None. This article is originally published at Insider Monkey.