(Bloomberg) -- Robinhood Markets Inc.'s shares have already sunk to a record low -- and there's still more room to fall.
That's the call from Deutsche Bank analyst Brian Bedell, who issued a “sell idea” on the brokerage Friday, warning of near-term pressures that will hinder its growth and profitability.
The shares of the brokerage -- a favorite of the meme-stock crowd that made day-trading into a pandemic-era pastime -- have tumbled about 59% from the high hit in August.
On Friday, the shares closed 5% lower, bringing losses for the week to over 17%. The Menlo Park, California-based company has skidded to four straight record lows and since Nov. 8 hasn't traded above the $38 price of its July initial public offering.
Deutsche's Bedell said the company's prospects may have looked overly optimistic in the midst of the day-trading surge. He continues to have a hold rating on the stock, reflecting a less bearish view of the company over the next year.
“The meme stock phenomenon we witnessed en masse earlier in the year was more applicable to Robinhood's recent customer growth and likely resulted in overestimation of the company's core fundamentals and growth trajectory,” Bedell wrote.
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