Why Robinhood Markets Stock Is Trading Lower Today

Shares of Robinhood Markets Inc. HOOD are trading lower following the release of the company's third-quarter earnings results, which included a miss on both EPS and sales.

The company also issued weak forward guidance. Robinhood estimates Q4 sales to be less than $325 million versus the $500 million consensus estimate, and FY21 sales to be less than $1.8 billion versus the $2.02 billion consensus estimate.

A few highlights from the earnings report include a 76% increase in monthly active users to 18.9 million versus 10.7 million year over year, though slightly overshadowed by a 36% drop in average revenues per user to $65 versus $102 during the same quarter in 2020.

Robinhood CEO Vlad Tenev stated, “this quarter was about developing more products and services for our customers including crypto wallets” as well as the introduction of 24/7 live phone support.

Robinhood Markets is a financial services company on a mission to democratize finance for all. Users are able to invest in traditional stocks with no account minimums and also have access to buy and sell various cryptocurrencies.

At the time of publication, shares of Robinhood Markets were trading 11% lower at $35.21. The stock has a 52-week low of $33.25 and a 52-week high of $85.00.

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