Is Robinhood Markets Stock a Buy Now?
Robinhood's (NASDAQ: HOOD) stock sank 7% on Aug. 3, after the online brokerage posted a mixed second-quarter report. Its revenue rose 53% year over year to $486 million and beat analysts' estimates by $8 million.
On the bottom line, it generated a net profit of $25 million, which marked its first profitable quarter and a vast improvement over its net loss of $511 million a year earlier. However, its EPS of $0.03 still missed the consensus forecast by nine cents.
Those headline numbers weren't bad, but Robinhood's sequential loss of monthly active users (MAUs) and a sequential drop in transaction revenues raised a few red flags. Let's review the soft spots and see if investors should still buy this volatile fintech stock.
Source Fool.com
