Robinhood (HOOD) reported earnings before the bell on Wednesday morning. The stock responded by closing down 14% on the session. Taking a look at the earnings report, here are the highlights:
- Quarterly revenue rose to $467 million, but short of expectations of $480 million.
- Earnings showed a loss of 0.09/share, which beat expectations.
- Crypto trading dropped 55% year-over-year.
- Transaction-based-revenue dropped by 11%.
The stock went public in the summer of 2021, and found an initial week-long bounce. It’s been all downhill ever since for the stock. From the peak of 2021 until today the stock has lost roughly 90% of its value. Is the selling over, or are we in for new lows on HOOD? Let’s take a look.
Looking at the second chart below you can see HOOD broke its trendline today coming off the June 2022 bottom. It fell down to an interesting level of short term support that I have highlighted with the dashed line. If we continue to see weakness under this level I would expect the all time lows of June 2022 to be tested again. Ultimately, I think the burden is on Robinhood to prove its validity long term as a viable entity.
