Robinhood Markets, the online Trading platform, has reported a swing to profit in its fiscal second quarter. However, despite the positive news, the company’s stock lost around 8% in after-hours trading. One of the areas of weakness was its cryptocurrency trading, which saw an 18% sequential decline, bringing in $31 million for the quarter. Mizuho analyst Dan Dolev still sees upside potential for Robinhood, with a price target of $14 per share. Dolev believes that Robinhood is gaining Market share from Coinbase and performing well in options trading. He also highlights the potential for the company’s retirement initiative to drive further success.
Robinhood ended the quarter with $11.5 million worth of cryptocurrency under custody, which remained largely unchanged from the previous quarter. Despite the drop in stock price during after-hours trading, Robinhood’s shares are up over 40% year-to-date. In terms of financial performance, the company earned 3 cents per share on $486 million in revenue for the second quarter. This beat analysts’ expectations of a cent of loss and $473 million in revenue.
However, the earnings report also revealed that Robinhood lost 1 million users in the second quarter. Despite this setback, Dolev remains optimistic about the company and its potential to perform well in the retirement sector. He believes that if Robinhood can demonstrate positive results and provide data points on retirement, it will significantly impact the stock’s performance.
Overall, although Robinhood experienced weakness in its cryptocurrency trading and a decline in user numbers, there are still positive aspects to its second-quarter results. The company’s swing to profit and beating of revenue expectations bode well for its future performance. Additionally, the potential for growth in the retirement sector and the company’s success in gaining market share in the cryptocurrency and options trading spaces offer a favorable outlook.
Second-Quarter Crypto Trading Revenue of Robinhood Declines by 18% Sequentially
parofix.com
Robinhood ended the quarter with $11.5 million worth of cryptocurrency under custody, which remained largely unchanged from the previous quarter. Despite the drop in stock price during after-hours trading, Robinhood’s shares are up over 40% year-to-date. In terms of financial performance, the company earned 3 cents per share on $486 million in revenue for the second quarter. This beat analysts’ expectations of a cent of loss and $473 million in revenue.
However, the earnings report also revealed that Robinhood lost 1 million users in the second quarter. Despite this setback, Dolev remains optimistic about the company and its potential to perform well in the retirement sector. He believes that if Robinhood can demonstrate positive results and provide data points on retirement, it will significantly impact the stock’s performance.
Overall, although Robinhood experienced weakness in its cryptocurrency trading and a decline in user numbers, there are still positive aspects to its second-quarter results. The company’s swing to profit and beating of revenue expectations bode well for its future performance. Additionally, the potential for growth in the retirement sector and the company’s success in gaining market share in the cryptocurrency and options trading spaces offer a favorable outlook.
Second-Quarter Crypto Trading Revenue of Robinhood Declines by 18% Sequentially
parofix.com
