Is it worth looking at Robinhood Analyst Ratings?

Robinhood has quickly risen to the center stage as one of the most prominent investment platforms. Its no-fee trading, intuitive UI, and simplification of investing have enabled it to grow rapidly, amassing over 18 million users in 2021. The app offers a lot of free features to keep those users engaged. Robinhood analysts make predictions: buy, hold or sell for many of the stocks on the platform. Users can see what percent of analysts consider a given stock a buy and what percent of analysts think it’s a good time to sell. They can use that information to influence their investments, but should they? This article aims to find out if those analyst ratings are worth their weight in bitcoin.

A bit over a year ago, I was sitting at home in the thick of COVID. I was looking at Robinhood's analyst ratings to see if I agreed with their outlooks on some of the most well-known companies on the NYSE. Robinhood has a team of analysts who rate thousands of companies on the app, those ratings are available to any Robinhood user. The screenshot below shows the analysts' ratings of Apple at the time I am writing this. In total, 43 analysts have rated Apple, 74.4% think that Buying Apple is a good idea, 20.9% suggest holding the stock and another 4.7% think it’s a good time to sell.