Robinhood Markets Inc. (NASDAQ:HOOD) will release earnings for the second quarter after the closing bell on Wednesday. Here’s a quick rundown of what investors should track in the stock and the company.
Will Robinhood Cheer Investors?
Analysts expect the commission-free brokerage platform to announce earnings per share of $0.41, down 2.3% year-over-year, but up 7.89% from the first quarter.
Robinhood is also expected to report revenue of $1.21 billion, up 22% from $989 million reported in the same quarter last year.
The HOOD stock has a consensus price target of $125 based on the ratings of 21 analysts, representing a potential upside of 31.70% from current levels. Price targets were raised in each of the last five ratings.
Key Signals to Watch
Short interest in the stock rose to 37.5 million shares, representing 4.8% of Robinhood’s publicly available float, and up from 3.9% in March. Typically, short interest below 5% is viewed as a sign of minimal bearish sentiment.
Traders were buying significantly more call options than put options, according to the put-call ratio, suggesting aggressive upside speculation.
Robinhood Chain: The Game Changer?
Cryptocurrencies accounted for 21% of Robinhood’s first-quarter transaction-based revenue, even as its slice of the pie fell sharply from a year ago.
Earlier this month, the company launched Robinhood Chain, an Ethereum (CRYPTO: ETH) Layer 2 designed to support tokenized stock trading, decentralized finance and AI agents.
The network has already attracted deposits worth $335 million, according to DeFi analytics platform DeFiLlama. Most chains, including Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), have seen their metrics drop in this period.
Price Action: Robinhood shares fell 0.54% in after-hours trading after closing 0.78% higher at $95.65 during Tuesday’s regular trading session. Year-to-date, the stock has plunged 15.43%.
LLY maintains a stronger price trend over the short, medium, and long terms with a poor value ranking, according to Benzinga’s Edge Stock Rankings.
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