Robinhood Q1 Earnings Preview: Will The Vlad Tenev-Led Brokerage Firm Feel The Pinch Of Crypto Bear Market?

Robinhood Markets Inc. (NASDAQ:HOOD) will release earnings for the first quarter after the closing bell on Tuesday. Here's a quick rundown of what investors should watch in the stock and the business.

Revenue, Earnings Estimates

Analysts estimate the commission-free brokerage platform to announce earnings per share of $0.39, up 5.4% from the same quarter last year.

Robinhood is also expected to report quarterly revenue of $1.14 billion, up sharply from $927 million in the year-ago quarter, but down about 11% from the previous quarter.

Analysts Slash Price Targets

The HOOD stock has a consensus price target of $109.70 based on the ratings of 27 analysts, with the highest forecast of $170 set by JMP Securities in October. JPMorgan and KeyBanc’s latest ratings from earlier this month, however, sharply lowered price targets.

Short Interest Remains Low

As of April 24, short interest in the stock fell from 33.46 million to 31.79 million, representing only 4.08% of the company’s publicly available float, indicating low bearish sentiment.

The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset's price, flashed a "Buy" signal for HOOD, according to TradingView. The Relative Strength Index hovered just above the centerline at 50, implying a "Neutral" condition.

Notably, cryptocurrencies accounted for 28% of Robinhood's fourth-quarter transaction-based revenue.

With prices of major tokens like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) plummeting sharply in the first quarter, it remains to be seen how much of an impact this has on Robinhood’s revenues.

Price Action: Shares of Robinhood closed 1.40% higher at $84.71 during Friday's regular trading session, according to data from Benzinga Pro. Year-to-date, the stock has plunged 25.10%.

Benzinga's Edge Stock Rankings show HOOD with weaker price momentum in medium- and long-term trends, offset by a strong Growth score.

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