Why Robinhood Markets Shares Are Falling Today

Robinhood Markets Inc HOOD is trading lower Friday morning after the company announced mixed fourth-quarter financial results and issued guidance below estimates. 

Robinhood reported a quarterly earnings loss of 49 cents per share, which was worse than the estimate for a loss of 45 cents per share. The company reported quarterly revenue of $363 million, which beat the estimate of $362.14 million.

Net funded accounts increased just 1% quarter-over-quarter, while monthly active users declined 8% from the previous quarter.

Robinhood said it expects first-quarter revenue to be "less than $340 million," which is well below the estimate of $448.19 million.

See Also: Robinhood Q4 Earnings Highlights: Lower MAU And Crypto Revenue, Updates on Crypto Wallets And Plans To Extend Trading Hours

"We had a momentous year, nearly doubling the number of customers on the platform and making critical investments in our team and infrastructure to support growth," said Vlad Tenev, co-Founder and CEO of Robinhood. "This year, we'll expand our ecosystem of products that make Robinhood the best place to start investing and build wealth for the long term."

Analyst Assessment: Multiple analyst firms lowered price targets on the stock following Robinhood's results:

• JMP Securities analyst Devin Ryan maintained Robinhood with a Market Outperform rating and lowered the price target from $58 to $45.
• Deutsche Bank analyst Brian Bedell maintained Robinhood with a Hold rating and lowered the price target from $15 to $12.
• Rosenblatt analyst Sean Horgan maintained Robinhood with a Buy rating and lowered the price target from $25 to $15.
• Barclays analyst Ross Sandler maintained Robinhood with an Equal-Weight rating and lowered the price target from $42 to $12.

HOOD Price Action: Robinhood has traded as high as $85 since it's IPO last year. It's making new lows today.

The stock was down 12.3% at $10.18 at time of publication.

Photo: courtesy of Robinhood.