TLDR
- Robinhood (HOOD) stock fell 5% to $96.58 on Thursday, from a prior close of $101.93.
- The company won Dubai Financial Services Authority approval, with a Middle East launch planned for 2027.
- Q2 crypto revenue fell 38% year over year to $100 million, the third straight quarterly drop.
- Analysts rate the stock āModerate Buyā with a $130.29 average target.
- Q3 earnings are due October 27.
Robinhood Markets (HOOD) stock fell 5% on Thursday and last traded at $96.58. It closed at $101.93 the day before.
The stock hit a low of $95.62 during the session. Volume reached about 19.1 million by mid-day, 29% below the daily average of 26.7 million.
The drop came the same day Robinhood announced a Dubai license. Traders sold anyway, which is not how good news is supposed to work.
The Dubai Financial Services Authority approved the retail platform for a launch next year. It will offer 10 asset classes, including equities, crypto, ETFs and investment tokens.
CEO Vlad Tenev said the move brings the company closer to a global platform. Salah Kaddoura will lead the regional business from the Dubai International Financial Centre.
Earnings Next Week
Robinhood reports third-quarter results on October 27. Investors are watching transaction revenue, funded accounts, assets under custody and crypto activity.
Crypto is the sore spot. Second-quarter crypto revenue fell 38% to $100 million, the third straight quarterly decline.
Total net revenue was $1.31 billion in that quarter. Crypto made up a small slice of it.
There were better signs later. Crypto volume hit $17.5 billion in August, up 61% from July but still down 38% from a year earlier.
Bitstamp handled most of it at $10.1 billion. The Robinhood app handled $7.4 billion.
In the July 29 report, Robinhood earned $0.62 per share against the $0.44 analysts expected. Revenue came in at $1.31 billion versus $1.29 billion expected.
The stock has a P/E ratio of 42.55 and a market cap of $86.83 billion. It sits below its 50-day average of $109.46 and just under its 200-day average of $97.03.
Analysts and Insiders
Rosenblatt started coverage with a Buy rating and a $135 target. Needham raised its target to $126.
Bank of America lifted its target to $156 earlier this month. Wells Fargo cut its target from $125 to $120 with an equal weight rating.
Of the analysts covering the stock, 29 rate it Buy or Strong Buy. Five say Hold and one says Sell, for a $130.29 average target.
Insiders sold about $128 million of stock over the last quarter. CFO Shiv Verma sold about $1.27 million worth in September under a pre-arranged plan.
Solana has reportedly passed Robinhoodās blockchain in tokenized-stock holders. TradePMR also added ICE Connect Wealth to Robinhoodās Fusion platform for advisors.
The stock last traded near $97 on Thursday, with earnings set for October 27.
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