Robinhood climbs as investors eye trading activity
HOOD•Robinhood shares rose 3.5% ahead of its third-quarter results, due after the market close. Analysts expect revenue of about $1.42 billion, up 12% year over year, and adjusted earnings per share of $0.56, down from $0.61 a year earlier.
1. Earnings in focus
Robinhood Markets shares climbed 3.5% in mid-morning trading on Tuesday ahead of its third-quarter results, due after the market close. Investors are focused on trading volumes and uptake of new products. Analysts expect quarterly revenue of about $1.42 billion, up roughly 12% year over year, and adjusted earnings per share of $0.56, down from $0.61 a year earlier.
2. Recent trading trends
Last quarter, the company beat profit estimates as strong trading in equities and prediction markets offset weakness in crypto revenue. In late September, Robinhood said it would allow 24-hour weekend trading for select stocks and launched new earnings-related event contracts.
3. Shares and estimates
With Tuesday’s move, the stock was down about 15% year to date, compared with advances of about 12.5% for the S&P 500 and 13.5% for the Nasdaq. Of 33 analysts covering the stock, 27 rated it “strong buy” or “buy,” five rated it “hold” and one rated it “sell.” The median price target was $135.50, up from $127.50 three months earlier.
