In Q3 2021, commission-free trading platform Robinhood Markets (NASDAQ: HOOD) reported a net loss of $1.32 billion, or $2.06 diluted earnings per share, on net revenue of $365 million, widely missing estimates from analysts. Furthermore, management is guiding for revenue to be less than $325 million in Q4, implying that revenue will come in smaller than any other quarter this year and only be slightly above revenue in Q4 2020. The underwhelming report results in big declines for the stock.
While I do see tremendous potential for Robinhood long-term if management can execute its road map, I ultimately see the stock as a show-me story, meaning that I wouldn't recommend buying shares until there is further proof of execution. Here's why.
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Source Fool.com