- Robinhood stock price will be in the spotlight this week as it releases its financial results.
- Analysts expect the results to show that its revenue growth continued.
- Technical analysis suggests that the stock will likely rebound to $100 in the near term.
Robinhood stock price remains in a deep bear market after plunging from last year’s high of $153 to the current $84. This retreat may end this week as the company releases its financial results on Tuesday.
Robinhood Stock in Focus Ahead of Earnings
HOOD stock price will be in the spotlight this week as it publishes its financial results, which are expected to show that its business continued growing in the first quarter.
Its business will be boosted by its market share in the stock and options markets, which have continued growing in the past few months amid the US-Iran war. Indeed, top American banks like Goldman Sachs, Morgan Stanley, and JPMorgan released some of their best trading numbers on record.
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The results will also provide some information about its recent entry into the prediction market, which is seeing strong growth in the United States and other markets. Robinhood provides these services through its partnership with Kalshi, which is seeing strong growth.
Still, the main blemish in this report will be its crypto business, which is expected to remain under pressure in the near term because of the winter season. The volume that most exchanges handled in the first quarter tumbled as Bitcoin and other altcoins plunged.
The upcoming results will show that Robinhood’s business made over $1.14 billion in the first quarter, up by 22.5% from the same period last year. Its earnings-per-share (EPS) is expected to move from 37 cents in Q1’25 to 39 cents in Q1’25. Chances are that Robinhood’s revenue and earnings will be better than expected.
The upcoming financial results are coming at a time when the company has become a bit undervalued based on its market share. Data shows that the company has a forward price-to-earnings (PE) ratio of 35, lower than the five-year average of 37.
Robinhood has a rule-of-40 multiple of 57%, which is based on its net income margin of 42% and its forward revenue growth of 15%. Analysts have a more bullish outlook, with the average target being $101.
HOOD Stock Price Prediction: Technical Analysis
The daily timeframe chart shows that the HOOD share price formed a double-bottom-like pattern at $68 and a neckline at $84, which it has retested. It has formed a falling wedge pattern, a common bullish reversal sign in technical analysis.
The stock has transitioned the Supertrend indicator from red to green for the first time in months. It has also jumped above the 50-day Exponential Moving Average (EMA).
Therefore, the most likely HOOD stock price forecast is bullish with the next key level to watch being the psychological level of $100, which is about 20% above the current level.
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