Robinhood's 3Q Results Better than First Glance

Dow Jones10-29 01:56

1356 ET - StoneX analyst Mark Palmer isn't surprised that Robinhood Markets' stock is down after the company posted the highest quarterly revenue and adjusted Ebitda in its history. "The explanation is not complicated," he says in a research note, pointing to quarterly earnings that came in a nickel below Wall Street models. Revenue and monthly active users missed estimates as well, he says. However, investors shouldn't be so quick to write the quarter off, according to Palmer. He says the earnings miss was largely tied to an unrealized mark-to-market loss on Robinhood Ventures Fund I. "Strip out the venture mark and HOOD's quarter was essentially in line with our adjusted EPS estimate of $0.65," he says. StoneX maintains its buy rating and $170 price target. Robinhood is off 4%.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment