6 days ago
Robinhood’s (HOOD) grounds crypto trading gross from the past 4th of 2024 whitethorn beryllium hard to repeat, according to JPMorgan expert Kenneth Worthington, who forecast a driblet successful integer plus volumes for the archetypal 4th of this year.
The online trading level reports archetypal 4th results aft the U.S. marketplace adjacent connected Wednesday.
The 4th quarter's staggering 700% surge successful cryptocurrency trading gross was down a sizable leap successful HOOD's wide transaction-based revenue. Worthington, however, sees that momentum stalling successful the archetypal quarter, citing a diminution successful some equity and crypto markets, particularly successful the second fractional of the quarter.
Worthington and squad estimation Robinhood users traded astir $52 cardinal successful crypto during the quarter, down from $71 cardinal successful Q4. Worthington attributes the driblet to a “risk-off” situation that erased overmuch of the market’s gains since the commencement of the year. Robinhood’s assets nether custody (AUC) are expected to autumn 5% from the anterior 4th to $183.3 billion, though inactive up 41% year-over-year.
While the study highlights beardown retail buying successful aboriginal April pursuing tariff-related quality from Washington, Worthington suggests that enactment whitethorn not beryllium capable to assistance archetypal 4th results. He warns that softer request for borderline and derivatives trading — besides seen astatine rival Interactive Brokers — could measurement connected Robinhood’s wide performance.
Worthington maintained a neutral standing connected the banal and trimmed his terms people by $1 to $44, suggesting astir 10% downside from the existent terms conscionable beneath $49.
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