Robinhood, the commission-free retail brokerage, has announced that the company suffered a significant “data security incident” on 3 November. As part of the attack, a hacker was able to steal the personal information of about 7 million Robinhood users, including email addresses, names, and personal data.

The stock price is down 3% today to $36 following the company announcement.

Robinhood had a hot start to life as a public company, with the IPO price doubling in a matter of weeks to a peak of $70. That now seems like a distant memory, as the company has struggled recently and retracing nearly 50%.

What next?

 Negative sentiment in the investor community seems high and retail popularity is waning. The company’s Q3 earnings were also disappointing, as revenues dropped 35% from Q2.
AlphaPicks maintains our house view that was published in August.We believe the upcoming periods will continue to be difficult for Robinhood and would recommend to avoid the stock.