Robinhood Markets ($HOOD) is ready to disclose its This fall earnings on Wednesday. Traders will likely be preserving an in depth eye on the corporate's 2023 outlook, as analysts have already lowered their earnings projections for This fall by 72%. Regardless of this, the inventory has risen 30% YTD and Robinhood might want to ship robust outcomes to take care of its upward momentum.
However various knowledge suggests a difficult scenario for Robinhood, with low worker morale and a enterprise outlook rating of solely 36 out of 100. Moreover, the corporate has seen a 60% drop in webpage site visitors and a 50% drop in app downloads within the final 18 months. This may point out that Robinhood is struggling to draw new prospects. Mix this with a shocking decline in Instagram followers, and there are too many indicators pointing to a lower in buyer sentiment.
To gauge the corporate's efficiency, traders will likely be watching month-to-month energetic customers, which dropped to 12.2 million in Q3, a lower of just about 50% from Q2 2021. Analysts predict an extra 28% drop in This fall.
The present upswing out there may imply that enterprise is slowly coming again to Robinhood, so for long-term holders, the longer term could be brighter. However the lower in webpage site visitors, enterprise outlook, MAU and Instagram followers may point out that the corporate is at the moment struggling. Add a dire risk on the regulatory entrance to overtake the dealing with of small traders, it is smart for traders to train warning when contemplating investing in Robinhood, given short-term draw back could be anticipated. $HOOD earnings will likely be introduced after hours at the moment.
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