A Robinhood Insider Just Bought a Boatload of Shares of the Beaten-Down Stock. Should Investors Follow Suit?

Robinhood Markets director Micky Malka purchased 23.6 million shares worth $35 million in late May/early June, signaling confidence despite the stock being down 25% year-to-date. The decline has been driven by plummeting cryptocurrency revenue amid weak crypto markets, though the company has growth catalysts including expanding prediction markets (up 320% last quarter), new geographic expansion, and Trump Accounts for children. The stock trades at a forward P/E of 30x 2027 estimates, which the analyst considers reasonable for a small position.