Stock trading app Robinhood reported a major revenue miss for the third quarter, amid a decrease in cryptocurrency trading.
For the third quarter, revenues increased +35% year over year to $365 million, but was well below the $431.5 million expected by analysts polled by Refinitiv.
The quarterly revenue figure is also lower than the second quarter’s revenue of $565 million, which was boosted by a massive increase in crypto trading.
Third-quarter transaction based revenue totaled $267 million, with only $51 million generated from cryptocurrency trading. Revenue from crypto trading was $233 million in the second quarter, bolstered by in the hype around meme-inspired dogecoin.
Revenue from options trading was $164 million, and that from equities trading was $50 million.
Average revenue per user plunged -36% year over year to $65.
Looking ahead, Robinhood projects fourth-quarter revenue to be limited to $325 million. The company expects account growth in line with the 660,000 opened in the third quarter of 2021.
“For the three months ending December 31, 2021, we anticipate that many of the factors that impacted our third-quarter results, such as seasonal headwinds and lower retail trading activity, may persist,” the company said in a press release.
The Moving Average Convergence Divergence (MACD) for HOOD turned positive on November 07, 2024. Looking at past instances where HOOD's MACD turned positive, the stock continued to rise in of 32 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on HOOD as a result. In of 47 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HOOD advanced for three days, in of 200 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 140 cases where HOOD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 20 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
HOOD broke above its upper Bollinger Band on December 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HOOD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.533) is normal, around the industry mean (5.702). P/E Ratio (28.329) is within average values for comparable stocks, (34.442). HOOD's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.610). HOOD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (9.268) is also within normal values, averaging (112.495).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HOOD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Industry InvestmentBanksBrokers