However, the company is expected to report a loss per share of $0.37 for the ongoing quarter. In addition, as of December 31, 2022, the company’s total liabilities came in at $16.38 million, compared to $12.48 million as of December 31, 2021.Īnalysts expect HOOD’s revenue for the first quarter (ending March 2023) to come in at $423.61 million, indicating an increase of 41.7% year-over-year. Also, the company reported a net loss of $166 million and $0.19 per share, respectively. Its loss before income taxes stood at $168 million for the fourth quarter. Here is what could shape HOOD’s performance in the upcoming months:įor the fourth quarter that ended December 31, 2022, HOOD’s transaction-based revenues decreased 41.9% year-over-year to $186 million, while its other revenues declined 25% year-over-year to $27 million. Moreover, HOOD’s crypto business has been under severe scrutiny for quite some time and has been fined a total of $135 million by regulators over the past two years. The SEC’s probe came amid a regulatory crackdown after crypto exchange FTX filed for bankruptcy. Securities and Exchange Commission (SEC) over its cryptocurrency business.
HOOD recently revealed that it is facing an investigation by the U.S. In addition to disappointing financials, increasing regulatory issues raise concerns about the company’s prospects. Also, its Assets Under Custody (AUC) decreased 4% sequentially to $62 billion, mainly driven by lower market valuations for growth stocks and crypto assets.
HOOD’s Monthly Active Users (MAU) declined 0.8 million sequentially to 11.4 million as customers continued to navigate the volatile market environment. The company also reported a net loss and net loss per share attributable to common stockholders of $166 million and $0.19, respectively. In this article, I have discussed several reasons why I am extremely bearish on this stock.įor the fourth quarter of fiscal 2022, HOOD’s transaction-based revenues declined 30% year-over-year to $186 million. Given its deteriorating fundamentals and a challenging macroeconomic environment, this popular software stock may continue to plunge this year. The stock is currently trading 41.1% below its 52-week high of $16.49, which it hit on March 29, 2022. Shares of HOOD have slumped 14.9% over the past year to close the last trading session at $9.72. (HOOD) is struggling with mounting losses, a declining active user base, and increasing regulatory pressures. Financial technology company Robinhood Markets, Inc.
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