Robinhood's Business Performance - Robinhood's stock price soared to a record high of $85 shortly after its IPO in 2021, driven by its popularity among young, first-time investors [1] - The stock price sank 91% to an all-time low of around $7 by mid-2022 due to the S&P 500 bear market, which deterred many clients from investing [2] - The company's stock price recovered with an 83% gain in 2024, largely due to the Federal Reserve's rapid interest rate hikes, which boosted interest revenue [3] Revenue Trends - Robinhood's monthly active users peaked at 21.3 million in mid-2021 but dropped to 11.8 million in Q2 2024 [4][5] - Transaction-based revenue in Q2 2024 was $327 million, significantly below the peak of $451 million in Q2 2021 [5] - Net interest revenue surged 319% from $68 million in Q2 2021 to a record $285 million in Q2 2024, driven by higher federal funds rates [6] Interest Revenue and Cash Holdings - Robinhood held $4.5 billion of its own cash and $4.5 billion in client funds in interest-bearing accounts in Q2 2024 [7] - The company's margin book reached an all-time high of $5 billion in Q2 2024, generating $73 million in interest revenue [8] Impact of Federal Reserve Rate Cuts - The Federal Reserve cut the federal funds rate by half a percentage point last week, with further cuts expected, potentially reducing Robinhood's net interest revenue [9][10] - The federal funds rate could decrease by almost half from its recent peak of 5.33%, leading to a significant decline in Robinhood's interest revenue [10] Transaction-Based Revenue Growth - Robinhood's transaction-based revenue growth in 2024 is primarily driven by options and cryptocurrency trading, which are riskier and less reliable for long-term growth [11] - The company cannot rely on these segments to offset the expected decline in interest revenue [11] Stock Price Outlook - The recent recovery in Robinhood's stock price may stall as interest rates decline further, making it a less attractive investment at this time [12]

Robinhood Markets Inc HOOD stock is up after Piper Sandler analyst Patrick Moley maintained an Overweight rating and raised its price target from $23 to $27. The re-rating follows the 50 bps Fed rate cut, with Moley reiterating that the second-order effects of Fed rate cuts on margin balance growth and overall retail trading activity will be enough to offset the negative impact of lower rates. The price target reflects seven times the analyst's 2026 revenue estimate (up from 6 times previously to reflect re ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Considering buying Robinhood stock? Here's what analysts think: Robinhood Markets Inc has a consensus price target of $21.56 based on the ratings of 20 analysts. The high is $32 issued by B of A Securities on August 12, 2024. The low is $7 issued by Atlantic Equities on August 31, 2022. The 3 most-recent analyst ratings ...

Investors might want to bet on Robinhood Markets, Inc. (HOOD) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and followin ...

Robinhood Markets, Inc. (HOOD) closed the latest trading day at $22.07, indicating a +1.99% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 0.65%. The company's shares have seen an increase of 10.69% over the last month, surpassing the Finance sector's gain of 4.89% and the S&P 500's gain of 4.86%. The investment community will be closely monitorin ...

kramikel Investment Thesis Robinhood (NASDAQ:HOOD) is a steal. Case in point, revenue growth rates are expected to remain very strong into the back half of 2024. If I were to pinpoint one blemish from its Q2 2024 earnings report, it would be that its free cash flow was subdued. That being said, that's because of the massive amount of working capital used this quarter. We should expect this working capital usage to reverse in the coming quarters. Furthermore, Robinhood's underlying EBITDA is now expected to ...

Robinhood Markets, Inc. (HOOD) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HOOD broke through the 20-day moving average, which suggests a short-term bullish trend. The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short- term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal sign ...

After reaching an important support level, Robinhood Markets, Inc. (HOOD) could be a good stock pick from a technical perspective. HOOD surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend. One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or ...

Robinhood's growth is taking a pause based on recent numbers. Robinhood (HOOD 0.20%) released August operating data, which is the regular news update investors get about the company's operations. While there's some good news, Travis Hoium digs into where there's some weakness in the video below. *Stock prices used were end-of-day prices of Sept. 10, 2024. The video was published on Sept. 10, 2024. ...

MENLO PARK, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) today reported select monthly operating data for August 2024: Funded Customers at the end of August were 24.3 million (up approximately 60 thousand from July 2024, up over one million year-over-year). Assets Under Custody (AUC) at the end of August were $143.6 billion (down 1% from July 2024, up 60% year-over-year). Net Deposits were $3.3 billion in August, translating to a 27% annualized growth rate ...