Robinhood's stock fell 5.05% during intraday trading on Thursday, following a series of negative developments from analysts and its latest financial report.
The decline comes after Truist Securities lowered its price target on Robinhood to $120 from $130, citing a "frustrating" fourth-quarter earnings report. Analysts highlighted that Robinhood missed expectations for revenue, funded customers, and net deposits, with the performance heavily impacted by a recent cryptocurrency selloff.
This earnings disappointment underscored the online trading platform's continued dependence on market conditions. Despite efforts to diversify its business, the volatility between the third and fourth quarters demonstrates that Robinhood remains vulnerable to shifts in cryptocurrency and broader market performance, which weighed heavily on investor sentiment.
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