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Here's How Much Robinhood Stock Is Expected to Move After Earnings
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Robinhood is set to report fourth-quarter earnings after the closing bell on Tuesday, with traders anticipating a big swing from the retail brokerage’s stock following the results.
Current options pricing suggests traders expect Robinhood (HOOD) stock could swing around 9% in either direction by the end of the week. A move of that size from Monday’s close near $87 could lift the stock back up to $95, where it was before taking a hit last week, or send it down to $78.
While Robinhood shares climbed Monday, they’ve still declined more than 40% from their record levels in October amid a pullback in cryptocurrencies, with the price of Bitcoin nearly 50% off its October highs.
Why This Matters to Investors
Tuesday’s earnings call could present a chance for Robinhood executives to address investor concerns over the company’s crypto exposure and provide updates on its latest offerings.
Robinhood, which derives a significant chunk of its revenue from cryptocurrency trading, has continued to expand its offerings in cryptocurrency markets in recent months, along with tokenization of private companies, and the booming world of prediction markets.
Analysts surveyed by Visible Alpha see Robinhood reporting quarterly earnings of 62 cents per share on a 32% year-over-year jump in revenue to a record $1.34 billion.
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Wall Street analysts are overwhelmingly bullish on Robinhood’s stock, with all eight of the analysts with current ratings tracked by Visible Alpha recommending buying the shares. Their average price target of $151 would suggest nearly 75% upside from Monday’s close.
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