Jim Cramer Highlights His "Problem" With Robinhood

Robinhood Markets, Inc. (NASDAQ:

) is one of the . When a caller inquired about the stock during the episode, Cramer said:

Here’s my problem with Robinhood. It sells at 30 times earnings, but it has way too much business that I think is crypto. And until they get so that the balance is less crypto and more say equities and bonds, I think it’s going to be too volatile, and it’s going to trade like Bitcoin.

Photo by Adam Nowakowski on Unsplash

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial platform that allows users to trade stocks, ETFs, options, cryptocurrencies, and other assets. Cramer discussed the company while presenting his game plan during the episode aired on February 6. He commented:

After the close, Robinhood reports. People are starting to get unnerved by how closely aligned this stock is with the price of Bitcoin. Even after today’s dramatic rebound, Bitcoin still feels like it’s lost its luster. The precipitous decline of the cryptocurrency occurring at the same time as a weakening dollar calls into question whether it’s a real store hold of value or even a hedge against inflation. We know nothing. We used to think it could be a currency. That’s obviously not going to happen. It’s a great speculative asset, I guess, until it started plummeting. So Robinhood may be the repository of something that’s become toxic, and I think a lot less dependable.

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