Jim Cramer voiced concerns as Robinhood Markets Inc. (NASDAQ:HOOD) shares have seen an uptick, even as market commentators like over the stock’s recent performance.
What Happened: Robinhood has experienced a significant 41% increase in stock trading activity in February compared to last year, resulting in a 6% rise in its shares. Despite the uptick, Cramer expressed reservations about the sustainability of the growth, CNBC reported on Wednesday.
He suggested that Robinhood’s recent gains were driven by “pure momentum” rather than the company’s underlying business fundamentals.
“And that’s not what I like,” he added.
Why It Matters: The surge in trading activity on Robinhood’s platform is a critical indicator of retail investor engagement in the stock market, which can ...