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HOOD has declined a couple bucks after its earnings report
Not helping matters is the sale of large blocks of 144 stock by founder and CEO Viad Tenev
And stock by the CFO
What other challenges does Viad Tenev face
Robinhood was an innovative disrupter in the style of Kathie Wood who continues buying shares
Now there is competition from brokers like Webull and moomoo and whatever else is out there that opens its trading platforms at 4am Eastern US time
Viad has begun 24 hour trading in select issues I cant see how that is so disruptive since the instruments would appeal mostly to institutions and the number is minute compared to the thousands of issues
That in part could explain why Robinhood is losing accounts per this Jones Boys article
Robinhood Needs to Steal More Users -- Heard on the Street -- WSJ
7:30 am ET August 3, 2023 (Dow Jones) Print
By Telis Demos
Robinhood Markets turned a surprise profit in the second quarter. But that may not be enough to nab back its momentum just yet.
What originally got the world so excited about Robinhood -- explosive growth in active users -- is a thing of the past. Monthly active users declined by about a million over the course of the second quarter, to 10.8 million. That is around half the level of two years ago, when Robinhood was in the midst of 2021's wild trading surge. Transaction-based revenue from equities, options and crypto trading is also falling, dropping 8% quarter over quarter.
However, where Robinhood is growing is in customers bringing more money into the brokerage, even if they aren't trading as much: Net deposits grew at an annualized 21% rate in the quarter, and the company's Gold cash sweep accounts -- which now pay a 4.9% yield -- have more than doubled since the start of the year, to $11 billion. Interest-based revenue is continuing to grow.
There is also growing revenue from non-trading activity. Between fully paid securities lending, in which investors can lend out their shares to earn passive income, and transaction revenue from instant withdrawals and debit cards, the company generated $24 million in revenue -- just a million dollars shy of the revenue generated by equities trading in the quarter.
All of this helped average revenue per user grow from $77 in the first quarter to $84 in the second quarter, the fifth straight quarter of growth. And thanks in part to the company's founders canceling some of their stock awards, as well as other cost controls such as layoffs, Robinhood was able to generate $25 million in net income in the second quarter, versus the continuing loss analysts were anticipating, according to Visible Alpha. This is the first quarter of net profit since it became a publicly traded company.
Yet while this is certainly a milestone, there should only be limited fanfare in Sherwood Forest. Average user revenue of $84 remains well behind what other online brokerages have historically generated, by hundreds of dollars. It is also getting harder, not easier, to make money from cash: Robinhood's annualized yield on earning assets fell from 3.68% in the first quarter to 3.51% in the second.
A rise in interest revenue helped the stock jump nearly 60% this year through Wednesday. Now the bar is getting higher, though, with investors initially evidently disappointed by the quarter, despite the profit milestone: Shares were down about 6% in after-hours trading on Wednesday.
The bright side is that Robinhood is at least bringing in raw materials. While monthly active users are declining, the number of net cumulative funded accounts is up to 23.2 million, about 700,000 more than it had two years ago. The key is enticing customers into becoming even more active, and thus more lucrative.
"Over time as we broaden our product selection, and deepen our relationships with customers, you're going to see a more consistent relationship between [monthly active users] and total funded accounts," Chief Financial Officer Jason Warnick told analysts on Wednesday.
Of course, expectations need to be adjusted right now, since it is such a fallow time for trading. The number of customers placing trades was down quarter over quarter in equity, options and crypto. And only options saw an increase by notional volume, or contracts in the case of options, per trader.
Robinhood told analysts that, even at today's relatively lethargic levels, it believes it is taking market share in equities and options trading. Still, the merry band may have to steal a lot more share if it wants to thrill the market once again.
Write to Telis Demos at Telis.Demos@wsj.com
Early Barchart Top 100
https://www.barchart.com/stocks/performance/percent-change/advances?timeFrame=today&viewName=main&screener=overall&orderBy=percentChange&orderDir=desc
Look at all the recent reverse split issues
What’s with all the spam
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Match Group Inc NASDAQ: MTCH
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This latest is about how trading has changed
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Big Tech companies report all week
GOOG (own it) will make a new 52 week high
The percentage of issues tracked by Barchart remains above 70%
https://www.barchart.com/stocks/momentum
The FOMC rate decision is tomorrow afternoon
No jitters today
Roughly 75% of issues tracked by Barchart are above the 50 day simple moving average
The rising tide is lifting all the boats even the leaking ones
https://www.barchart.com/stocks/momentum
Sounds bullish! What's your average?
OK, fellas, this is where it gets interesting
One can observe from the graph the advance from 8 and change to the current pricing
The typical Robinhood account balance is nothing compared to the typical Fidelity brokerage balance
BBs to Beachballs
But they are also younger and ruthlessly ambitious
????
HOOD kicking SOFI butt
Were investors $HOODwinked during the IPO?
$HOOD must've learned. Doesn't halt stocks very often.
~bought 5/26 $12 calls @.04c
I didn't know they had any invested. Details?
BREAKING: Robinhood Reports AMC at $417 Billion Market Cap
https://franknez.com/robinhood-reports-amc-at-417-billion-market-cap/
How much did $HOOD have deposited in silicon valley bank?
Poof!
A "processing error." Yeah, right.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a leading innovator in the blockchain industry
Hood is offering commission-free trading for both cryptocurrencies and traditional stocks. The company has quickly become a major player in the blockchain space, and its platform is used by millions of traders around the world. Robinhood Crypto has become a popular way for users to buy, sell, and store cryptocurrencies. With its continued focus on innovation and expansion, Robinhood Markets, Inc. (NASDAQ:HOOD) is well-placed to continue to be a major player in the blockchain industry.
Over the past 3 months Robinhood Markets, Inc. (NASDAQ:HOOD) has received 3 Buy ratings and 5 Hold ratings from Wall Street analysts and has an average price target of $12.94. The stock's average price target represents an upside of 30.97% from current levels and places it among the most promising blockchain stock picks of Wall Street analysts.
On February 9, Deutsche Bank analyst Brian Bedell raised his price target on Robinhood Markets, Inc. (NASDAQ:HOOD) to $11 from $9 and reiterated a Hold rating on the shares.
Robinhood Lost $57 Million Shorting COSM Stock
https://franknez.com/robinhood-lost-57-million-shorting-cosm-stock/
Not sure what's up with this stock.
150 weekly calls at .03cents each
What's up, $HOOD rats?
Not just $HOOD. Entire market remains bearish.
Robinhood Collapses Following Difficulties of Savior
https://www.newsbreak.com/news/2817089572516/robinhood-collapses-following-difficulties-of-savior?noAds=1&_f=app_share&s=i2
Yawn
Exaggeration. Could go lower, but zero is improbable.
Using 'HOOD is like screaming "I'm flat broke" or "I just turned 17."
"The average account size is about $3,500, according to market news site Business of Apps, compared to $100,000 for E-Trade and $240,000 for Schwab."
https://www.forbes.com/advisor/investing/robinhood-ipo/
Stock platforms by FICO scores:
https://www.stilt.com/blog/2021/02/robinhood-low-fico-users-2021/
When Hood went public at $38 I predicted that soon (a year or so) "Hood" players would be embarrassed to have the app on their phones.
Very early on, Robinhood players did well with MJ stocks. But it's been steadily downhill for most in recent years. RH marketing was often bogus using the lure of "Free Trades" plus good access to IPOs... which have mostly underperformed.
My son signed up for Robinhood in 2021 and got like $50 in complementary Dogecoins (now 6 cents each). I don't think he ever made a real stock buy with RH.
It's a huge problem when your customer base is going broke by way of your product.
Dogecoin Chart
Bingo! This turd is headed to zero as traders flock for the exits. Will need a life line from a real and stable brokerage firm to survive.
Not just $HOOD. Entire market remains bearish.
"HOOD-winked? Investors not celebrating year after Robinhood's IPO"
"New York (CNN Business)It's been one year since Robinhood went public. And to say that the online broker's performance has been disastrous would be a massive understatement. If someone were to write a kids' book about it, they could title it "Robinhood and the Terrible, Horrible, No Good, Very Bad Year."
The stock debuted at $38 a share and fell more than 8% on its first day of trading. Robinhood then briefly captured the attention of the momentum traders on Reddit who originally shunned it and soared as high as $85 in its first week of trading. It has been all downhill since then, though."
Shares now trade around $9, more than 75% below their IPO price and nearly 90% from their all-time high. Robinhood has been hit hard by the plunge in the broader stock market and crypto crash, which have scared away many would-be investors."
Robinhood has also been criticized for making investing seem more like gaming, which may have contributed to the meme mania frenzy in stocks like AMC (AMC) and GameStop (GME). That bad press hasn't helped."
https://www.cnn.com/2022/07/29/investing/robinhood-ipo-stock-anniversary/index.html
Perhaps. Entire market is struggling to recover.