After Disappointing Guidance, Is It Time to Give Up on Robinhood Stock?
There wasn't a ton to like in the recent fourth-quarter earnings report from Robinhood Markets (NASDAQ: HOOD). The online commission-free brokerage posted a loss of $0.49 per share on total revenue of nearly $363 million. Earnings per share missed analyst estimates, and revenue for the final three months of the year came in flat.
Even worse, management guided for revenue in the first quarter of this year to come in at less than $340 million, which is more than $100 million less than Wall Street analysts had been expecting. After pricing its initial public offering at $38 per share in July of 2021, the stock is down about 60%. Is it time to give up on Robinhood?
During the end of 2020 and the first half of 2021, Robinhood took advantage of favorable trading conditions, a swarm of retail investors that entered the market, and the boom in meme stocks and cryptocurrencies. New accounts, monthly active users, and assets under custody surged at the company.
Source Fool.com
