Bernstein maintains $130 Robinhood target as Q1 miss extends post-earnings losses
Shares of Robinhood ( HOOD ) extended losses after the company missed first-quarter earnings and revenue targets, but Bernstein sees it as likely to double from current levels.
After falling 2% to $82 late Tuesday, HOOD continued its decline in premarket prices on Wednesday, according to Yahoo Finance data.
Robinhood may recover from a weak Q1 marked by a 47% decline in crypto revenue, Bernstein noted, maintaining a bullish outlook and $130 price target.
Like Galaxy Digital, which posted a net loss of $216 million for the first quarter, the decline is linked to the overall crypto market slump.
Bitcoin fell roughly 24% in its weakest quarterly performance since Q1 2020.
However, Bernstein analysts say conditions are stabilizing and new products such as the forecast market could support growth.
Despite missing revenue expectations, Robinhood's overall revenue increased year over year, driven by strong marketing activity and growth in new segments such as banking and credit cards.
The company is investing in AI and shifting its focus to long-term financial services, where future growth is expected from both crypto acquisitions and new business lines.
Disclosure: This article was edited by Vivian Nguyen. See our Editorial Policy for more information on how we create and review content.
