Robinhood Stock Forecast is $12.

Robinhood Stock Forecast is $12.

Robinhood Stock Forecast: Next 12 Months’ Forecast is $12


Latest Robinhood Stock Price

Robinhood Stock Forecast for the Next 12 Months

Average HOOD Stock Forecast for the next 12 Months$12
Goldman Sachs$13
Keybanc$13
Barclays$11
Morgan Stanley$13
Mizuho$14
  • Robinhood disrupted the market by offering commission-free stock trading, Robinhood mainly sells its orders to market big players like high-frequency trading firms (HFTs), which rely on bid-ask spread for their profit of each trade. The critics call this model “payment for order flow” (PFOF) and it prevents retail investors from getting the best price for a stock.
  • The bad news for Robinhood is that it is already banned in Canada, the UK, and Australia, and regulators in the US and Europe have also begun scrutinizing the process, representing a major chunk of Robinhood’s revenue. If the PFOF model is banned, Robinhood will have to begin charging commissions, hurting Robinhood investors even more.
  • Granted that Robinhood‘s growth through the pandemic was driven by investment fads like meme stocks and speculative cryptocurrency, but what Robinhood has done is it has made a loyal customer base in US youth who have jumped into trading just because of Robinhood, otherwise they would not have done, and this base is going to help Robinhood sail the tide.
  • Robinhood is proving to be agile and innovative and with a customer base of 22 million funded accounts, Robinhood can cross-sell other financial products. Robinhood is adding new features to its crypto brokerage solution which could enable it to fight with Coinbase.
  • Robinhood trades at a much-discounted price of 75% lower than the all-time high and gives investors a decent entry point, should Robinhood’s price rebound on some other meme stock in the near future.
  • Robinhood’s journey resembles Facebook’s (Meta), whose IPO was coincidently being priced at $38 and which saw a major drop in the initial months after IPO, but is now a darling of Wall Street worth nearly $1 trillion.
  • Definitely, for Robinhood, there is stiff competition from Morgan Stanley, and Fidelity but six analysts have still rated Robinhood as a “buy”. Given all factors, it is time to stay low on Robinhood and watch its growth trajectory in the coming quarters.

Robinhood Stock Forecast: Q3 Results

  • Revenue of the company increased by 14% sequentially to $361 million.
  • EPS for Q3 stands at -0.20 as compared to -0.34 (Q2), with a YOY growth rate of 87.12% (Q3) as
    compared to 42.86% (Q2).
  • Cashflow from operating activities is -$83M (Q3,2022) as compared to -$1.79B (Q3,2021), which is
  • an increase of 95.38% YoY.
  • Cashflow from investing activities is -$11M (Q3) (YoY: 92.74%) as compared to -$26M (Q2) (YoY: -57.58%).
  • Cashflow from financing activities is -$6M (Q3) (YoY: 100.28%) as compared to -$28 (Q2) (YoY: -104.57%).
  • Net Income for Q3 is – $175M with a YoY of 86.71%.
  • Average Revenues Per User (ARPU) increased to $63 from $56 in the second quarter of 2022.
  • Monthly Active Users (MAU) decreased 1.8 million sequentially to 12.2 million for September 2022 as customers continued to navigate the volatile market environment.
  • Segment wise revenue details: Net interest revenue: $128M, Transaction based revenue: $208 (Options: $124 million, Cryptocurrencies: $51 million, Equities: $31 million).

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.