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Robinhood’s Stock Is Now Worth Less Than Its Cash on Hand

  • Brokerage’s market capitalization slides to about $6 billion
  • Some analysts cut their price targets on the stock this week
Baiju Bhatt and Vlad Tenev on Wall Street during Robinhood’s IPO listing day in New York in July 2021.
Baiju Bhatt and Vlad Tenev on Wall Street during Robinhood’s IPO listing day in New York in July 2021.Photographer: Eugene Gologursky/Getty Images

Robinhood Markets Inc. shares slumped to a fresh low on Wednesday, giving the beleaguered brokerage a market value that’s less than the cash on its balance sheet.

After posting more than $3 billion of losses since its initial public offering in late July, Robinhood’s shares have plunged more than 80%, cutting its market capitalization to as low as $5.99 billion. The firm had $6.19 billion of cash and cash equivalents at the end of the first quarter.