Robinhood Markets Inc. (NASDAQ:HOOD) is set to announce its fourth-quarter earnings today, which marks the first earnings call since the hybrid exchange found itself at the center of the FTX crisis in November 2022. Robinhood, which recently expanded into cryptocurrency trading, was left vulnerable following the collapse of FTX, which was formerly the second-largest cryptocurrency exchange. The collapse was due to FTX founder and former CEO Sam Bankman-Fried’s 7.5% stake in the company, which prompted fears among shareholders that he would dump his Robinhood stock, causing the share price to drop over 30% in the week after FTX’s implosion.
However, Robinhood’s shares have since stabilized and have rallied 33% to $10.74 year to date, with a market capitalization of approximately $9.5 billion. Although the outlook for Robinhood remains challenging, the company projects a decrease in operating expenses for the full year, with total operating expenses expected to peak at $2.4 billion, a decrease of 31% from the previous year.
According to chief market analyst Michael Hewson at CMC Markets, “it’s been a difficult few months for Robinhood Markets although there does appear to be some stabilizationization in the share price, having hit record lows last summer.” He predicts losses to come in at 10 cents per share, which is a 50% improvement on losses of 20 cents per share in the third quarter. However, Hewson cautions that “the outlook is set to remain challenging, given the uncertainty around the crypto space and the recent collapse of FTX, and other failures.”
Robinhood Markets Inc Stock Analysis:
11 analysts have forecasted Robinhood Markets Inc’s stock price to be an average of USD 11.82 in the next 12 months. Stock Target Advisor has rated Robinhood Markets Inc as Slightly Bullish, based on 5 positive indicators and 3 negative indicators. Robinhood Markets Inc’s stock price has been on the rise lately, increasing by 0.35% in the past week, 2.63% in the past month, and decreasing by 29.25% in the last year. At the last closing, Robinhood Markets Inc’s stock price was USD 10.74.