Robinhood stock price has fallen in the past few weeks, moving from the year-to-date high of $119.87 to a low of $87.93. This retreat will be put to the test as the company publishes its financial results, which will provide more color about its business.
Robinhood to publish its quarterly results today
HOOD stock will be in the spotlight after the market closes today, July 29, as the fintech giant publishes its financial results. These numbers are expected to show that its revenue jumped in the second quarter as volume in the stock and options markets soared.
The volume soared because of the artificial intelligence (AI) boom and the US-Iran war that fueled volatility in the market. In its recent report, the company said that its funded clients jumped to 27.7 million in May, up by 110k from the end of April. Also, the total platform assets jumped by 9% from April to $377 billion, while net deposits rose to $5.6 billion.
Robinhood has also benefited from the predictions business through its partnership with Kalshi. This growth likely accelerated during the recently concluded World Cup event, which drew more people to the market.
READ MORE: Robinhood stock to soar as it becomes ‘the first hyperscaler of online brokerages’
The main blemish to watch will be its crypto business, which has suffered from the ongoing crypto winter. Bitcoin price has fallen from last year’s high of $126,300 to $64,000 today. As a result, the market capitalization of all coins has dropped from over $4.2 trillion to about $2 trillion.
Yahoo Finance data shows that the average estimate is that its revenue jumped by 29% in the second quarter to $1.28 billion. Its earnings-per-share is expected to come in at 43 cents, up slightly from the previous 42 cents. In its last results, Robinhood’s earnings-per-share missed analysts estimates.
Robinhood Chain metrics are growing
The upcoming earnings come at a time when the recently launched Robinhood Chain is seeing strong growth. DeFi Llama data shows that the platform’s total value locked (TVL has jumped to a record high of $342 million. This growth makes it the fastest-growing chain in the crypto industry.
More data shows that DEX protocols in the chain have handled over $12.8 billion since its launch, with Uniswap being the biggest protocol. In total, Robinhood Chain has made $3.43 million since its launch earlier this month.
As Coinbase’s Base, this network will not generate substantial amounts of revenue for Robinhood. However, it will be a layer where a lot of assets, especially tokenized stocks are traded in. The company will provide more details about this business in its earnings report.
Additionally, Robinhood will provide more information about its Trump Accounts business, which is expected to bring billions of dollars in assets to its platform over time.
Most analysts have boosted their forecast for the stock, with KeyCorp and BTIG placing a target of $125. Needham has a target of $123, while Bernstein and Goldman Sachs have a target of $160 and $137, respectively.
HOOD stock price technical analysis
Robinhood stock chart | Source: TradingView
The daily chart shows that the Robinhood share price has dropped sharply in the past few days, moving from a high of $119.87 to the current $92.76. It has formed the highly bullish doji candlestick pattern, whose lower side coincides with the lower side of the ascending channel. A doji candle often leads to a strong rebound.
Therefore, the stock will likely continue rising, potentially to the psychological level of $110. A move above that level will point to more gains, potentially to this month’s high of $119.87.
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