According to CNBC, Robinhood stock fell after its third quarter revenue fell “way short of expectations on lighter crypto trading.” More specifically, Robinhood’s crypto revenue plunged 78% from the second quarter to $51 million in the September-ending quarter.
Full Answer
Should you buy Hood stock?
· Shares of Robinhood ( HOOD 1.46% ) sank on Thursday after the popular stock-trading platform said a group of its early investors filed to sell more than 97 million shares. At 12:15 p.m. EDT ...
Will Hood stock go up?
· Source: mundissima / Shutterstock.com. So, what’s going on with Robinhood lately? Robinhood went public just this past July, opening at $38 a share, at the low end of its expected range. Since ...
How to discuss $Hood and new IPO stocks with clients?
· Robinhood begins trading on the Nasdaq. Halftime Report. Shares of Robinhood closed down more than 8% in its Nasdaq debut, after pricing near the low end of its IPO range. The online brokerage ...
What did Robinhood do wrong?
· Real-time trade and investing ideas on ROBINHOOD MARKETS INC HOOD from the largest community of traders and investors. Rooms Shows Rankings Earnings Newsletters Shop. Cancel. Log In. Sign Up. DOW 0.00%. S&P 500 0.00%. NASDAQ 0.00%. Trending now. ROBINHOOD MARKETS INC 8.15 1.12 (12.08%) Watch.
Rapid growth
Founded in 2013, the free trading pioneer forced the brokerage industry to drop commissions on retail trading, lowering the barrier for millions of new investors to access the stock market.
Road ahead
Despite its rapid growth in the past few years, Robinhood has some future risks.
Foreboding Q4 Results and Q1 Guidance
Several aspects of the company’s Q4 results and Q1 guidance were quite bearish for HOOD stock.
Cryptos and Meme Stocks Will Likely Continue to Fall
With many pundits and members of the public still very bullish on cryptos, it’s easy to forget or overlook just how far the coins, which were viewed by many as pretty much invincible only six months ago, have fallen.
More Competition Is Reportedly on the Way
On Feb. 3, Seeking Alpha reported that that the social media platform Stocktwits intends to let users to trade cryptocurrencies. I would not be at all shocked if the website eventually also enables its users to buy and sell stocks.
The Bottom Line on HOOD Stock
The crypto and meme stock craze is over and is poised to erode further going forward, causing the trading activity of Robinhood’s fan base to sink much further. Meanwhile, Robinhood looks poised to get a significant, new competitor.
About Robinhood Markets
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies.
Robinhood Markets (NASDAQ:HOOD) Frequently Asked Questions
14 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Robinhood Markets in the last twelve months. There are currently 2 sell ratings, 6 hold ratings and 6 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" Robinhood Markets stock.
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Key Points
Robinhood derives 78% of its revenue from payment for order flow, which could be barred by U.S. regulators.
A business model under fire
Traditionally, a stock broker's job is to connect clients to other participants in the market. If a client wants to buy stock in a company, the broker finds a willing seller, and for that service the broker earns a commission.
The crypto shift, and the big data breach
It's not just the regulators putting pressure on Robinhood. Investors have been exiting the stock for several months, which seemed to coincide (in part) with the company's decision to deviate its focus away from stock and options trading products and into cryptocurrency offerings.
A long road back
There's no question Robinhood has changed investing for the better in many ways. The stock market has typically never been a young person's game, but Robinhood helps first-time investors gain valuable experience while they don't have a significant net worth to place at risk.
