- The shares of Robinhood Markets Inc (NASDAQ: HOOD) have received a price target of $55 from Mizuho. These are the details.
The shares of Robinhood Markets Inc (NASDAQ: HOOD) have received a price target of $55 from Mizuho. And Mizuho analyst Dan Dolev had decreased the price target from $68 while maintaining a “Buy” rating on the company shares.
Dolev noted that there are a few areas of concern. This includes a decline in new funded accounts and monthly active users. The company also saw slower revenue growth and weaker-than-expected guidance.
Robinhood had reported that its third-quarter transaction-based revenue was $267 million, of which $51 million was from cryptocurrency trading. The revenue from crypto in the company’s second-quarter was significantly higher at $233 million.
“Q2 was kind of one of those idiosyncratic market events where there’s this massive interest specifically in doge,” said Robinhood CFO Jason Warnick in an interview with CNBC. “We love it when those moments happen. It’s a great way to bring a lot of new customers onto the platform. But we’re really thinking about investing in crypto over the long term. And so it’s you know, frankly, it’s gonna be impossible for us to accurately predict … revenue on a quarter-to-quarter basis.”
For Robinhood, options trading had contributed $164 million and equities trading added $50 million to transaction-based revenue. The net cumulative accounts dropped to 22.4 million in the third quarter from 22.5 million in the second quarter. The monthly active users totaled 18.9 million, down from 21.3 million in the second quarter. Robinhood’s average revenue per user decreased by 36% to $65 year-over-year from $102. For the quarter, the company reported a net loss of $1.32 billion ($2.06 per share).
Robinhood CEO and co-founder Vlad Tenev said that the quarter was about developing more products and services for customers like crypto wallets. Tenev noted that over 1 million people joined the crypto wallets waitlist to date.
Going forward, Robinhood is expecting fourth-quarter revenue of somewhere slightly under $325 million. And the company is seeing account growth in line with the 660,000 that were opened in the third quarter of 2021.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
