Wall Street · The Block
Robinhood earnings miss, crypto weakness fail to shake Wall Street’s bullish outlook
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Wall Street analysts see Robinhood 's growing prediction market and blockchain businesses as reasons to look past its slight third-quarter earnings miss on Tuesday.
Key facts
- Robinhood reported revenue of $1.42 billion, while its crypto revenue fell 55% to $120 million from the same period last year
- Bernstein reiterated its outperform rating and $160 price target, while StoneX also kept a buy rating and a $170 target
- StoneX analyst Mark Palmer said the negative reaction to results, which saw Robinhood stock Robinhood Markets, Inc. HOOD -4.00% fall 10% in the hours after releasing them, was an overreaction
- They expect prediction markets, perpetual futures, and its July-released Robinhood Chain to generate roughly 25% of Robinhood's revenue by 2028
Summary
Bernstein reiterated its outperform rating and $160 price target, while StoneX also kept a buy rating and a $170 target. Robinhood reported revenue of $1.42 billion, while its crypto revenue fell 55% to $120 million from the same period last year. StoneX analyst Mark Palmer said the negative reaction to results, which saw Robinhood stock Robinhood Markets, Inc. HOOD -4.00% fall 10% in the hours after releasing them, was an overreaction. "We read it differently," Palmer wrote, noting that it was an unrealized loss on its Robinhood Ventures Fund the reporter that caused earnings per share to fall by $0.07.