In one of the most highly-anticipated IPOs of 2021, Robinhood Markets Inc (NASDAQ:HOOD) went public in July, listing its shares on the Nasdaq for $38.
Shortly after, the stock soared to $85 per share before trending consistently lower. With the stock making new all-time lows Thursday, Ritholtz Wealth Management’s Josh Brown decided to initiate a position.
“I still hate it, but everybody hates it too much,” Brown said Thursday on CNBC’s “Fast Money Halftime Report.”
Brown’s new position comes as a surprise following remarkably bearish comments from the investor after Robinhood’s public debut.
Related Link: Josh Brown Calls Robinhood An Online Gambling Platform, Helped Propped Up By Dogecoin
However, Brown made it very clear that he bought the stock for a trade and plans to sell his trading position very near-term.
“I’m not going to be in this one long so I don’t want anybody to follow me into it,” he said. “I could be out as soon as today.”
Brown noted that he doesn’t want to hold the stock long because he already owns PayPal Holdings Inc (NASDAQ:PYPL) and Coinbase Global Inc (NASDAQ:COIN).
“However, I do think this stock is way too hated and I do think that there could be some more upside.”
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Brown’s Thesis: Brown told CNBC that at the lows this morning, Robinhood was more than 80% off its highs and selling at a valuation of about $12 billion.
“Do you understand this company was raising money pre-IPO in August of 2020 at $12 billion?”
With the stock selling around the levels “where some of the smartest money” was investing in the name, he thought it was right to buy Robinhood shares for a trade.
“It had been just completely wiped out … and then I saw there weren’t a lot of sellers below $15, so I pulled the trigger earlier this morning,” Brown said.
HOOD Price Action: Robinhood has traded as low as $14.80 and as high as $85 over a 52-week period.
The stock was down 1.75% at $15.53 Thursday afternoon.
Photo: PiggyBank Canada from Flickr.