Robinhood Stock Slides 10% After Q4 Revenue Miss Despite Earnings Beat

Robinhood Markets, Inc. (NASDAQ:HOOD) shares are trading lower Wednesday after the company reported worse-than-expected fourth-quarter sales results on Tuesday after the market closed.

• Robinhood Markets stock is taking a hit today. Why is HOOD stock dropping?

Q4 Snapshot: Revenue Miss, Earnings Beat With Strength Across Key Metrics

Robinhood reported revenue of $1.28 billion, missing the consensus estimate of $1.34 billion. In addition, the company reported earnings per share of 66 cents, beating the consensus estimate of 62 cents.

Transaction-based revenues increased 15% year-over-year to $776 million, driven by options revenue of $314 million, up 41%, equities revenue of $94 million, up 54%, and other transaction revenue of $147 million, up more than 300%. Cryptocurrencies revenue declined 38% to $221 million.

Net interest revenues rose 39% to $411 million, while other revenues climbed 109% to $96 million, including $50 million in Robinhood Gold subscription revenue, up 56%.

Net income totaled $605 million, compared with $916 million in the prior-year quarter, which included a tax benefit and regulatory accrual reversal. Total operating expenses increased 38% year-over-year to $633 million.

Total platform assets increased 68% year-over-year to $324 billion, and net deposits were $15.9 billion in the quarter. Robinhood Gold subscribers increased 58% year-over-year to 4.2 million.

Technical Analysis: Below Key Averages With Mixed Momentum

Currently, Robinhood is trading 22.2% below its 20-day simple moving average (SMA) and 37.1% below its 100-day SMA, suggesting a bearish short-term outlook. Over the past 12 months, shares have increased by 60.48%, and they are positioned closer to their 52-week highs than lows, indicating some resilience despite recent volatility.

The RSI is at 35.28, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting the current uncertainty surrounding the stock.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Robinhood Markets, highlighting its strengths and weaknesses compared to the broader market:

• Value: Weak (Score: 13.82) — Trading at a steep premium relative to peers.
• Growth: Strong (Score: 90.71) — Indicating robust growth potential.
• Momentum: Moderate (Score: 69.61) — Suggesting decent short-term performance.

The Verdict: Robinhood Markets’ Benzinga Edge signal reveals a mixed outlook. While the strong growth score indicates potential, the weak value score suggests that the stock may be overvalued, warranting caution from investors.

Robinhood Shares Fall Lower

HOOD Price Action: At the time of writing, Robinhood shares are trading 8.03% lower at $78.70, according to data from Benzinga Pro.

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