Robinhood's Assets Under Custody Have Fallen 31% -- Is It Time to Sell the Stock?
In the second quarter of the year, the online commission-free brokerage Robinhood Markets (NASDAQ: HOOD) saw its assets under custody (AUC) fall from $93 billion to $64 billion, a decline of roughly 31%. It's the largest quarterly decline Robinhood has experienced in two years. Lots of high-growth tech stocks and cryptocurrencies experienced a huge sell-off in the second quarter, contributing heavily to this drop in AUC at Robinhood.
The company's business has floundered for several quarters now, as the bear market has been brutal for its operations. Is it time to dump the stock?
While AUC is down significantly, a lot of this is beyond Robinhood's control because the value of those assets is tied to equity and crypto valuations. AUC will also likely bounce back when asset prices do, and Robinhood's CFO Jason Warnick said on the company's second-quarter earnings call that AUC had jumped back above $70 billion due to the rally in July.
Source Fool.com