Robinhood drops 14% after reporting big declines in trading volume and revenue (2024)

FAQs

Robinhood drops 14% after reporting big declines in trading volume and revenue? ›

Robinhood drops 14% after reporting big declines in trading volume and revenue. Although third-quarter revenue rose 29% to $467 million, it fell short of the $480 million analysts were predicting.

Robinhood Markets shares dropped after it missed Wall Street's third-quarter revenue expectations, as transaction revenue and monthly active users both slowed.

Net income increased year-over-year to $30 million, or earnings per share (EPS) of $0.03, compared with a net loss of $166 million, or EPS of -$0.19, in Q4 2022. Total operating expenses decreased 17% year-over-year to $445 million. Adjusted Operating Expenses(non-GAAP) increased 14% year-over-year to $364 million.

Per FINRA regulation, PDT flags will remain on your account indefinitely, outside of extraordinary circ*mstances.

Robinhood is a member of the Securities Investor Protection Corp. (SIPC). This means that any loss of an investor's securities (e.g., stocks and bonds) and cash held by Robinhood is protected up to $500,000 in the event the firm fails or goes out of business. This includes up to $250,000 protection for cash holdings.

The company's growth rates are stabilizing on a sequential basis as it reins in its spending. The stock could recover quickly as retail investors rotate back into the market.

No incidents reported today.

Robinhood also reported fewer monthly active users, which fell 16% to 10.3 million in the third quarter from the same period last year. Although third-quarter revenue rose 29% to $467 million, it fell short of the $480 million analysts were predicting.

You can lose more money than you deposit. You'll be responsible for any deficit if falling prices reduce the value of your securities below the margin maintenance requirement, and you may have to deposit additional funds to your investing account on short notice to cover market losses.

What flags you as a day trader? ›

If you make four or more day trades over the course of any five business days, and those trades account for more than 6% of your account activity over the period, your margin account will be flagged as a pattern day trader account.

Just as how long you have to wait to sell a stock after buying it, there is no legal limit on the number of times you can buy and sell the same stock in one day. Again, though, your broker may impose restrictions based on your account type, available capital, and regulatory rules regarding 'Pattern Day Traders'.

The Importance of Having 25,000 to Day Trade

Provides a cushion for potential losses: As mentioned earlier, day trading comes with a high level of risk. Having $25,000 in your account provides a cushion to absorb any losses and protects you from overextending yourself.

Your securities and cash are protected by SIPC

Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash) for each investing account, including IRAs.

Some of the most common fees that cause customers to have an account deficit are Robinhood Gold fees and fees associated with American Depositary Receipts (ADRs). You can find all of your past Robinhood Gold fees and interest payments in the app in History.

Fidelity's fee structure is somewhat different, as this platform offers significantly more products and services than Robinhood. Fidelity doesn't charge trading fees or commissions on stocks and ETFs. However, unlike Robinhood, it does charge $0.65 per contract to trade most options.

The brokerage cash sweep annual percentage yield (APY)* paid by program banks minus fees paid to Robinhood is 1.5% as of August 11, 2022, or 5% for Robinhood Gold members as of Nov 15, 2023. The APY your cash earns is subject to change. *The non-Gold cash sweep program APY will switch to 0.01% in May 2024.

Based on short-term price targets offered by 15 analysts, the average price target for Robinhood Markets, Inc. comes to $18.10. The forecasts range from a low of $9.50 to a high of $30.00. The average price target represents an increase of 5.72% from the last closing price of $17.12.

HOOD Stock 12 Month Forecast

Based on 15 Wall Street analysts offering 12 month price targets for Robinhood Markets in the last 3 months. The average price target is $19.21 with a high forecast of $30.00 and a low forecast of $12.00. The average price target represents a 15.97% change from the last price of $16.57.

In 2024, analysts expect Robinhood to finally achieve GAAP profitability, with its adjusted EBITDA increasing 33% to $711 million.