Robinhood Faces Strong Earnings Expectations Ahead of Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy HOOD?
Source: stocktwits
- Optimistic Market Expectations: Polymarket traders have assigned an 86% chance for Robinhood to beat quarterly earnings, reflecting strong confidence in a projected 30% revenue growth driven by user monetization and expansion into crypto and other markets.
- Positive Retail Sentiment: A Stocktwits poll indicated that 62% of respondents expect Robinhood to exceed EPS and revenue estimates, and despite a 27% year-to-date stock decline, only 15% anticipated misses on both metrics, showcasing a generally optimistic retail outlook.
- Significant Profitability Improvement: Robinhood reported an EPS of $0.61 for the same quarter last year, marking a 259% increase, while the trailing twelve-month EPS reached $2.40, over 300% higher than the previous year, indicating enhanced operational leverage and cost control.
- Rating Upgrade Boost: Wolfe Research upgraded Robinhood from ‘Peer Perform’ to ‘Outperform’ with a price target of $125, citing that the high trading volumes in prediction markets could mitigate potential issues in crypto trading, thereby bolstering investor confidence.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 86.560
Low
130.00
Averages
156.24
High
181.00
Current: 86.560
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood Q4 Earnings Preview: Expectations and Analyst Insights
- Earnings Release Date: Robinhood is set to release its Q4 earnings after the market close on February 10, with investors keenly watching its performance following four consecutive quarters of beating earnings expectations, indicating a strong growth trajectory.
- Earnings Decline Expected: Analysts forecast that Robinhood's earnings per share will drop to $0.63 this quarter, down from $1.01 in the same period last year, which may reflect increased market competition and fluctuations in user engagement.
- Revenue Growth Forecast: Despite the decline in earnings expectations, Robinhood's quarterly revenue is projected to reach $1.34 billion, up from $1.01 billion a year earlier, suggesting that the company continues to grow in revenue, likely due to an expanding user base.
- Stock Price Reaction: Ahead of the earnings report, Robinhood's stock rose by 4.5% to close at $86.56, indicating a positive market sentiment and investor optimism regarding the company's future performance.
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Robinhood Earnings: Focus on Prediction Markets and Cryptocurrency Revenue
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- Expected Revenue Growth: The results are anticipated to show strong revenue growth driven by increased trading activity and sports betting.
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Robinhood Faces Strong Earnings Expectations Ahead of Report
- Optimistic Market Expectations: Polymarket traders have assigned an 86% chance for Robinhood to beat quarterly earnings, reflecting strong confidence in a projected 30% revenue growth driven by user monetization and expansion into crypto and other markets.
- Positive Retail Sentiment: A Stocktwits poll indicated that 62% of respondents expect Robinhood to exceed EPS and revenue estimates, and despite a 27% year-to-date stock decline, only 15% anticipated misses on both metrics, showcasing a generally optimistic retail outlook.
- Significant Profitability Improvement: Robinhood reported an EPS of $0.61 for the same quarter last year, marking a 259% increase, while the trailing twelve-month EPS reached $2.40, over 300% higher than the previous year, indicating enhanced operational leverage and cost control.
- Rating Upgrade Boost: Wolfe Research upgraded Robinhood from ‘Peer Perform’ to ‘Outperform’ with a price target of $125, citing that the high trading volumes in prediction markets could mitigate potential issues in crypto trading, thereby bolstering investor confidence.
See More
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- Market Sentiment Shift: Despite the Dow's record close above 50,000 points in the previous session, investor sentiment towards the SPDR S&P 500 ETF remains bearish, indicating a cautious outlook that may influence short-term investment decisions.
- Earnings Reports Watch: Investors are set to closely monitor upcoming quarterly reports from major companies like Coca-Cola, CVS Health, and Spotify, as these earnings will provide critical performance guidance that could impact stock movements in their respective sectors.
- Economic Data Monitoring: The market will keep an eye on December retail sales data and the Q4 employee cost index, as these economic indicators will offer key insights into consumer trends and economic health, potentially affecting overall market sentiment.
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Robinhood Q4 Earnings Preview: Expectations and Analyst Insights
- Earnings Release Date: Robinhood is set to release its Q4 earnings after the market close on February 10, with investors keenly watching its performance following four consecutive quarters of beating earnings expectations, indicating a strong growth trajectory.
- Earnings Decline Expected: Analysts forecast that Robinhood's earnings per share will drop to $0.63 this quarter, down from $1.01 in the same period last year, which may reflect increased market competition and fluctuations in user engagement.
- Revenue Growth Forecast: Despite the decline in earnings expectations, Robinhood's quarterly revenue is projected to reach $1.34 billion, up from $1.01 billion a year earlier, suggesting that the company continues to grow in revenue, likely due to an expanding user base.
- Stock Price Reaction: Ahead of the earnings report, Robinhood's stock rose by 4.5% to close at $86.56, indicating a positive market sentiment and investor optimism regarding the company's future performance.
See More
Robinhood Earnings: Focus on Prediction Markets and Cryptocurrency Revenue
- Earnings Report Timing: Robinhood Markets will report its fourth-quarter earnings after the market closes on Tuesday.
- Expected Revenue Growth: The results are anticipated to show strong revenue growth driven by increased trading activity and sports betting.
See More
Robinhood Faces Strong Earnings Expectations Ahead of Report
- Optimistic Market Expectations: Polymarket traders have assigned an 86% chance for Robinhood to beat quarterly earnings, reflecting strong confidence in a projected 30% revenue growth driven by user monetization and expansion into crypto and other markets.
- Positive Retail Sentiment: A Stocktwits poll indicated that 62% of respondents expect Robinhood to exceed EPS and revenue estimates, and despite a 27% year-to-date stock decline, only 15% anticipated misses on both metrics, showcasing a generally optimistic retail outlook.
- Significant Profitability Improvement: Robinhood reported an EPS of $0.61 for the same quarter last year, marking a 259% increase, while the trailing twelve-month EPS reached $2.40, over 300% higher than the previous year, indicating enhanced operational leverage and cost control.
- Rating Upgrade Boost: Wolfe Research upgraded Robinhood from ‘Peer Perform’ to ‘Outperform’ with a price target of $125, citing that the high trading volumes in prediction markets could mitigate potential issues in crypto trading, thereby bolstering investor confidence.
See More
Market Movers: AAppLovin, TSMC, BP, ON Semi, Credo, Upwork, ZoomInfo, and Others
- Stock Market Performance: Stock futures rose modestly on Tuesday, indicating a positive trend in the market.
- Tech Sector Influence: The increase in stock futures is attributed to a recent comeback in the technology sector, which has driven equities higher over the past two sessions.
See More
Fintech Stocks in Focus as MrBeast Acquires Step App
- Fintech Developments: YouTube star MrBeast's acquisition of the fintech app Step has reignited interest in fintech stocks, potentially attracting a younger demographic into financial services and enhancing market competitiveness.
- Market Sentiment Shift: Despite the Dow's record close above 50,000 points in the previous session, investor sentiment towards the SPDR S&P 500 ETF remains bearish, indicating a cautious outlook that may influence short-term investment decisions.
- Earnings Reports Watch: Investors are set to closely monitor upcoming quarterly reports from major companies like Coca-Cola, CVS Health, and Spotify, as these earnings will provide critical performance guidance that could impact stock movements in their respective sectors.
- Economic Data Monitoring: The market will keep an eye on December retail sales data and the Q4 employee cost index, as these economic indicators will offer key insights into consumer trends and economic health, potentially affecting overall market sentiment.
See More
MrBeast Acquires Step to Empower Young Financial Literacy
- Acquisition Context: MrBeast, known as Jimmy Donaldson, has announced the acquisition of the financial services app Step, aiming to provide a financial foundation for millions of young people, which not only highlights his commitment to youth financial education but also expands his business empire into the fintech sector.
- User Base: Step boasts over 7 million users and has attracted notable investors such as Stephen Curry and Charli D’Amelio, creating a substantial market potential that is expected to enhance MrBeast's influence among younger demographics following the acquisition.
- Competitive Landscape: Step competes with fintech giants like Block, Robinhood, and SoFi, which are scaling growth by attracting younger customers; MrBeast's acquisition is poised to draw greater attention and resources to Step in this fiercely competitive market.
- Market Sentiment: Retail sentiment for Robinhood has shifted from bearish to extremely bullish, with expectations of strong quarterly results, reflecting a robust interest from young investors in fintech platforms, thereby validating the strategic significance of MrBeast's acquisition of Step.
See More
