Robinhood stock is down 8% this morning in pre-market stock trading action following the release of the firm’s Q3 2021 earnings report as multiple indicators pointed to ongoing weaknesses in some important growth drivers including lower crypto trading volumes and a decline in average revenues per user (ARPU).
Full Answer
Is Robinhood stock a good investment?
The one-year Robinhood Markets Inc. stock forecast points to a potential upside of 31.41. The average equity rating for HOOD stock is currently 2.70, trading closer to a bullish pattern in the stock market. The market cap for the stock reached $11.62 billion, with 842.40 million shares outstanding and 678.04 million shares in the current float.
Is Robinhood Markets stock a buy?
Robinhood Markets, Inc. (HOOD) closed at $16.25 in the latest trading ... The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average ...
Will Robinhood stock go up?
Robinhood Markets Inc. gained 9.65% or 1.12 points... Robinhood Markets Inc. [NASDAQ: HOOD] gained 9.65% or 1.12 points to close at $12.73 with a heavy trading volume of 69143277 shares. The company report on January 27, 2022 that Robinhood Reports Fourth ...
Is Robinhood a good platform?
The Robinhood stock app is suitable for young people who are new to investing. Given that the platform is rather rudimentary and simple to use, it’s the perfect choice for beginners. Plus, the absence of both trading and non-trading fees and commissions appeals to investors seeking to avoid any extra costs.
Why is Robinhood stock going down?
Shares of popular stock trading app Robinhood tumbled over 10% after the company reported fourth quarter earnings that failed to impress investors, while also issuing a grim revenue forecast for the start of 2022 as trading activity continues to slow down.
What is happening with Robinhood today?
Robinhood Status. Visit our support site. Get the Atom Feed or RSS Feed. No incidents reported today.
Is Robinhood a buy today?
Unfortunately, Robinhood is still unlikely to be profitable in 2022. The company has been working towards that goal, but Robinhood's declining userbase could spell trouble in the short term. Moreover, Robinhood is likely to face even more competition from companies such as eToro.
Why is Robinhood not selling my stock?
You may receive this message if you have an outstanding pending order for the shares of stock you'd like to sell. You'll need to cancel any outstanding orders before you can sell the shares. To view your pending orders in your mobile app: Tap the Account icon in the bottom right corner of your home screen.
What is wrong with Robinhood?
Robinhood was also called out for misleading customers, with FINRA stating the broker had cost customers around $7 million through its "misstatements." Another big chunk of money set aside for customers was the result of Robinhood trading outages in March 2020, a time of extreme market volatility.
Is Robinhood safe?
YES–Robinhood is absolutely safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC. Furthermore, Robinhood is a securities brokerage and as such, securities brokerages are regulated by the Securities and Exchange Commission (SEC).
What is the future of Robinhood?
Robinhood reported net interest revenues of $257 million for 2021, this was a 45% increase over the prior year. Investors shouldn't be surprised to see that number grow in the future as it expands its stock-lending program. The program could also increase the overall stickiness of its ecosystem.
Will Robinhood recover?
Key takeaways. Don't expect Robinhood to make a comeback overnight - but as long as you believe that investing will become more mainstream among retail investors and that trading activity will recover, there's no reason not to buy Robinhood at all-time lows.
Is Robinhood good for long term?
And it doesn't offer the tax-advantaged investment accounts that are key to building long-term wealth. The app has 21 million customers and over $102 billion in assets and aims to be “easy, friendly, and approachable” to its customers....Robinhood Fees.FeeAmountInactivity, data fees$0Wire transfers$06 more rows•Jan 4, 2022
Do I lose my money if a stock is delisted?
Once a stock is delisted, stockholders still own the stock. However, a delisted stock often experiences significant or total devaluation. Therefore, even though a stockholder may still technically own the stock, they will likely experience a significant reduction in ownership.
Can Robinhood liquidate my shares?
Buying shares 'on margin' means using funds lent from the broker, and it is not unusual for brokers to automatically liquidate such shares if an account falls below minimum balance requirements. On Robinhood, users need an account balance of at least $2,000 to trade on margin.
What happens to your money if Robinhood shuts down?
The most likely scenario is that Robinhood simply gets swallowed up by one of the large trading companies that it is currently competing with. A potential future organized merger between Robinhood and a competitor is nothing to lose sleep over.
Was Robinhood hacked?
What happened in the Robinhood data breach? Robinhood reported Monday that it suffered a security breach last week where hackers accessed some personal information for a total of 7 million Robinhood customers and demanded a ransom payment, according to the Associated Press.
Is Robinhood offline?
Check all robinhood.com outages. Robinhood.com is UP and reachable by us.
Why is Robinhood not updating?
Logging out and logging in again, or uninstalling and reinstalling the app typically fixes the problem. If it doesn't, our daily system refresh will update the market data. If you believe there's a larger problem with the market data of a stock, please send us a note and we'll be happy to take a look!
Warnings of slowing growth alarmed investors
Joe honed his investing skills as an analyst for Stock Advisor. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns.
What happened
Shares of Robinhood ( NASDAQ:HOOD) sank 10.4% on Wednesday after the online brokerage's third-quarter financial results disappointed shareholders amid a shortfall in cryptocurrency trading volumes.
So what
Robinhood's revenue rose 35% year over year to $365 million. That was well below Wall Street's expectations for revenue of $431.5 million. It also represented a sharp decline from the $565 million in revenue Robinhood generated in the second quarter.
Now what
Robinhood expects the muted trading activity to persist into year-end. In turn, management guided for revenue of no greater than $325 million in the fourth quarter and 2021 full-year revenue of less than $1.8 billion.
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.
Is Robinhood Stock A Buy Right Now?
Shares are far from their post-IPO highs and there is no current buy point, so the stock isn't a buy right now. Wait for the stock to form its first base, which would offer an initial buy point.
Is Robinhood a good stock broker?
The platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies. Robinhood ranked among the best online stock brokers in 2021 for Mobile Trading Platforms/Apps and Margin Investing/Interest Rate.
Is Robinhood paying for trades?
The top stock market regulator told Barron's that a ban on payment for order flow in "on the table." Because Robinhood doesn't charge its users fees for trades, it generates revenue by directing trades to certain market makers in return for a portion of the profits.
