Robinhood Stock Is Down Today – SpaceX Reportedly Considering Cutting HOOD From Its IPO

• HOOD along with SOFI, which aren’t tied to any of the banks underwriting the deal, remain in discussions to handle some of the sales, the report added. 
• The report further said that the plans are not final and could ​change as SpaceX nears its IPO in a few months. 
• Bernstein lowered the firm's price target on Robinhood to $130 from $160 and kept an ‘Outperform’ rating on the shares, per TheFly. 

Robinhood (HOOD) shares are down 2.5% on Monday after price target cuts and reports that SpaceX is considering cutting the firm out of its initial public offering.

Robinhood and SoFi have both pitched for roles on the deal but SpaceX is considering cutting them ​out altogether, Reuters reported on Monday. 

More Details

Morgan Stanley, which is a lead underwriter on the deal, is expected to route a significant ​portion of shares set aside for smaller-ticket U.S. retail investors through its own brokerage platform E*Trade, the report said, citing people familiar with the matter. 

HOOD along with SOFI, which aren’t tied to any of the banks underwriting the deal, remain in discussions to handle some of the sales, the report added. 

The report further said that the plans are not final and could ​change as SpaceX nears its IPO in a few months. 

Price Target Cut

Brokerage firm Bernstein lowered the firm's price target on Robinhood to $130 from $160 and kept an ‘Outperform’ rating on the shares, per TheFly. 

The note said that the combination of geopolitics and temporary crypto weak sentiment is offering big discounts on crypto stocks and in Bernstein’s view, these businesses offer exposure to trillion-dollar markets with years of growth ahead. The firm said, "we will see a bottom in crypto stocks into weak Q1 earnings."

Retail Reaction

Retail sentiment around HOOD trended in ‘bullish’ territory amid ‘high’ message volume. 

One user said that HOOD stock ‘closed on a multi-year support level’ on Monday. 

Shares in the company have fallen almost 44% so far this year. 

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