- Robinhood share price has dropped by over 25% from the highest point this year.
- The company published mixed financial results this week as its revenue grew.
- It is still investing heavily in the crypto industry. It will launch crypto futures soon.
Robinhood (NASDAQ: HOOD) stock price has bounced back modestly in the past few days, helped by the comeback of American equities. The HOOD share price rose to $9.76 on Tuesday, the highest level since October 11th. It has jumped by almost 10% from the lowest point this month.
Robinhood earnings download
Robinhood is a leading player in the financial services industry. It is a major disruptor that forced the brokerage industry as it introduced the concept of no-commissions. Today, Coinbase offers numerous products like stocks, cryptocurrencies, and options.
Robinhood also has a Gold product that allows customers to deposit money and earn returns. It has over 1.33 million members, who are taking advantage of high interest rates to earn as high as 4.9% APY. The number of Robinhood Gold members has jumped by over 100k in the past few months.
The company also launched Robinhood Retirement, a service that has accumulated over $1 billion in assets under custody. Its securities lending product added over 100k customers, signaling that the company is doing well.
Robinhood’s revenue continued growing in the third quarter as it hit over $467 million, a 29% YoY increase. Transaction-based revenue dropped slightly to $185 million. Net revenue rose by 7% to $251 million.
Robinhood also gives users a platform to trade cryptocurrencies like Bitcoin, Ethereum, and Ripple. Also, it is investing in crypto futures, which generate millions of dollars in revenue for its competing companies. In a statement, the company’s CEO said:
“As we deliver for our active traders, we continue to see our market share of retail trading grow. In Q3, both our equities and options market share increased from Q2 and year-over-year.”
The next key catalyst for the Robinhood stock price is its international expansion. It will soon launch its brokerage options market in the UK and crypto trading in the European Union. Robinhood also worked to introduce 24-hour trading.
Robinhood stock price forecast
The daily chart shows that the HOOD share price has been under pressure in the past few months. It has dropped by more than 26% from the highest point this year. Recently, however, the stock has bounced back and is now trading at the highest point since October 11th.
HOOD share price formed a falling wedge pattern, which is usually a positive sign. It has remained slightly below the 50-day moving average. Therefore, because of the falling wedge, the company will likely continue doing well in the coming weeks.
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