Robinhood’s (HOOD) commission-free trading platform has gained significant popularity. However, the company’s stock plunged to its 52-week price low of $21.50 in its last trading session. Deutsche Bank Brian Bedell, an analyst at DE:, attributed the popularity of meme stocks earlier in the year to having overestimated the company’s growth. So, given the stock’s lofty valuation, is HOOD an ideal investment now? Let’s discuss.Financial services company Robinhood Markets NASDAQ: Founded by Menlo Park, Calif.,, Inc., is a pioneer in commission-free stock and exchange-traded fund trades. HOOD’s stock declined in its public market debut on July 29, closing more than 8% lower at $34.82 per share. HOOD shares dropped 41.8% during the past month, and 22.8% within the past five trading days. They closed the previous session at $21.55. HOOD fell more than 10% and reached its 52-week lowest of $21.50 in the last trading session. The stock trades well below its 200-day and 50-day moving averages.

The popular stock trading app, StockTrader, disclosed in November that there had been a data breach that affected approximately 7,000,000 customers. The stock’s price plunged following the news.

For the third quarter, ended September 30, HOOD’s total net revenue came in at $364.92 million, missing the consensus estimate of $437.55 million by 16.6%, as cryptocurrency trading diminished. Company cited seasonal problems and lower retail trade activity as the factors that affected its third-quarter results. They expect these headwinds continue into the current quarter. Its average revenues per user (ARPU) decreased 36% year-over-year to $65, while crypto activity declined from record highs in the prior quarter in HOOD’s last reported quarter. In the third quarter, 2021, the company saw a decline in both new and cumulatively funded accounts. HOOD anticipates that fourth quarter revenues will not exceed $325M and total revenue for the year of $1.8B.

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