What's Going On With Robinhood Markets Stock Today?

Robinhood Markets Inc HOOD shares are trading higher Thursday after the company reported better-than-expected financial results.

What Happened: Robinhood said third-quarter revenue decreased 1% year-over-year to $361 million, which beat average analyst estimates of $355.27 million, according to Benzinga Pro. The company said its top-line results were up 14% sequentially. 

Robinhood reported a third-quarter net loss of 20 cents per share, which beat average estimates for a loss of 31 cents per share.

Monthly active users came in at 12.2 million for the third quarter, down 1.8 million from the second quarter, "as customers continued to navigate the volatile market environment." 

Total funded accounts jumped by 60,000 from the previous quarter to 22.9 million. Average revenue per user reached $62 in the quarter, up from $56 in the previous quarter. 

"In the third quarter we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned," said Vlad Tenev, co-founder and CEO of Robinhood.

Related Link: Robinhood Q3 Earnings Highlights: Revenue And EPS Beat, MAUs Decline, 'Volatile Market Environment' Impact

Robinhood expects operating expenses for full-year 2022 to be in a range of $2.34 billion to $2.4 billion, representing a decrease of approximately 31% to 32% from the prior year.

Analyst Assessment:

• Keybanc analyst Josh Beck maintained Robinhood with an Overweight rating and raised the price target from $11 to $13.
• Goldman Sachs analyst Will Nance maintained Robinhood with a Neutral rating and raised the price target from $11.50 to $13.

HOOD Price Action: Robinhood has a 52-week high of $18.93 and a 52-week low of $6.81.

The stock was up 10.9% at $12.64 at time of publication.

Photo: PiggyBank Canada from Flickr.