$500 Account Follow Along Day 2 | Trading $HOOD’s Stock Buyback & Charting $PLTR

Robinhood, the trading app that revolutionized retail investing, just announced its first-ever stock buyback plan. This $1 billion repurchase program signals a potential turning point for the company, but what does it mean for investors, and our $500 Account Follow Along! $HOOD was on our watchlist, so we break down the news and how we are playing it in this article, as well as a trade idea for $PLTR!

May 29, 2024
Meta Matt
Updated Watchlist

Welcome to day 2 of my $500 Account Follow Along! Check out the prior $500 Account Follow Along Blog Post where we break down all our trade ideas and build a watchlist!

$HOOD Flirts With Entry After Stock Buyback News Drops

$HOOD (Robinhood Markers Inc) broke above our $20.90 price level of interest. We were watching for a 4H candle close above $20.90 to set up a limit order at $20.90.

Check Out Our $HOOD Trade Idea!

$HOOD closed a 4H candle above $20.90 right at market close. I will personally be waiting until market open to make any moves on this one, as pre-market trading volume/volatility can be sketchy for Limit Orders, and I won’t be actively watching the charts that early.

Get All The Updates First In Our Free Discord

The other plays on our watchlist aren’t close enough to our price levels of interest for me to worry much about them for tomorrow morning. I’ll be checking $HOOD in the morning however, and assessing how I will play it, and post it in the discord!

Robinhood Announces First-Ever Stock Buyback: Signaling Maturity or Cash Grab?

Robinhood, the popular trading app for retail investors, announced its first-ever share buyback plan on Tuesday. They plan to repurchase $1 billion worth of stock over the next two to three years.

Why it Matters:

This move signals a potential shift for Robinhood. Traditionally, stock buybacks are associated with more established companies. By initiating a buyback, Robinhood is trying to convince investors it's maturing beyond its startup phase.

$HOOD

There are two ways to interpret this:

  • Maturity Play: Robinhood might be trying to attract new investors seeking stable, long-term companies.Repurchasing shares can indicate confidence in the company's future and potentially boost stock prices.
  • Undervaluation Signal: Robinhood's share price is still significantly lower than its December 2021 peak. The buyback could be a way to signal they believe the stock is undervalued and ripe for a rebound.

Investors seem to be cautiously optimistic. Robinhood's share price jumped after the announcement, but the company still has a long way to go to reach its pre-downturn highs. This buyback plan is a gamble for Robinhood. Only time will tell if it's a sign of a maturing company or an attempt to prop up a struggling stock.

$PLTR Trade Idea

We will be discussing this trade idea we came up with today in our next video! So make sure to follow @PennyboisStock on YouTube and X!!!

Entry: Watching for a break below $17.25 followed by a 4H candle close back above $17.25.
Targets: $22+
Stop Loss: $15.50

Learn How To Chart These Out On Your Own!



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