Robinhood Markets Stock Is Sliding: What's Going On?

Robinhood Markets Inc HOOD shares are trading lower Thursday. The company reported second-quarter financial results after the close on Wednesday and multiple analysts are out with updates following the print.

• Q2 Revenue: $486 million beat estimates of $475.02 million
• Q2 EPS: 3 cents beat estimates for a loss of 2 cents

Total net revenues increased 53% year-over-year and 10% sequentially. Net interest revenue was up 13% quarter-over-quarter. Transaction-based revenues fell 7% quarter-over-quarter as options fell 5%, crypto decreased 18% and equities were down 7%. 

Robinhood said it had 23.2 million funded accounts, up about 70,000 sequentially. Monthly active users decreased 1 million sequentially to 10.8 million. Average revenue per user increased from $77 to $84 sequentially. 

The company ended the quarter with $5.8 billion in cash and equivalents, up from $5.5 billion at the end of the first quarter. 

Related Link: Robinhood Q2 Earnings Highlights: Revenue Beat, Brokerage Reaches Profitability, Revenue Per User Rises And More

"In Q2, we reached a significant milestone by achieving GAAP profitability for the first time as a public company," said Vlad Tenev, co-founder and CEO of Robinhood. 

"Guided by our bold product roadmap we're continuing to innovate for our customers, grow assets, gain market share, and change the industry for the better."

Robinhood said it expects total operating expenses for full-year 2023 to be between $2.33 billion and $2.41 billion. The company's expense outlook was improved by about $45 million from the first quarter.

Following the company's quarterly results, Barclays analyst Ross Sandler maintained Robinhood with an Underweight rating and raised the price target from $10 to $11. Citigroup analyst Christopher Allen maintained a Neutral rating and raised the price target from $10 to $12.

HOOD Price Action: Robinhood shares were down 6.35% at $11.65 at the time of publication, according to Benzinga Pro.

Photo: Tech Daily from Flickr.