In a bold promotional move, Robinhood recently launched a holiday giveaway, distributing $750,000 worth of Bitcoin to its users. This event was part of their festive “HOOD Holidays” initiative, which also included an earlier giveaway of $500,000 in Dogecoin and luxury prizes such as Rolex watches and trips to Hawaii.
However, the excitement surrounding this giveaway quickly turned sour as many users experienced significant technical difficulties. Reports flooded in detailing app crashes, blank screens, and notifications indicating that users had “missed the rewards” despite being actively engaged in the claiming process. What was intended to be a celebratory occasion instead highlighted the vulnerabilities of the Robinhood application.
Alongside Bitcoin, Robinhood offered enticing luxury items, which contributed to the social media buzz surrounding the event. Notably, five individuals won trips for two to Hawaii, while 1,000 others received Away suitcases, blurring the lines between cryptocurrency and high-end giveaways.
Despite the festive atmosphere, Robinhood”s stock (HOOD) did not reflect the excitement of the giveaway. The stock closed the day down 1.92% at $118.13, underperforming the S&P 500, which saw a marginal increase of 0.03%. Over the past month, HOOD has dropped 6.05%, contrasting sharply with a 4.37% rise in the broader finance sector and a 2.57% gain in the S&P 500.
Market analysts are divided concerning the future trajectory of Robinhood”s stock. Brian Bedell from Deutsche Bank remains optimistic, maintaining a “buy” recommendation and increasing his price target from $150 to $160. Conversely, Carter Worth has expressed caution, pointing out the stock”s significant rise from $29.66 in April to $153.86 in October. He warns of a potential bearish reversal, suggesting the stock could decline to around $100.
As Robinhood navigates these challenges, it remains to be seen how they will address the technical issues that marred their promotional efforts and whether they can regain investor confidence in the competitive landscape of cryptocurrency trading.
