Robinhood (Hood) Record Record Crypto Trading Revenue from Robinhood (Hood) Record predicts that it will drop in digital asset volume for the first quarter of this year, according to JPMorgan analyst Kenneth Worthington.
The online trading platform reports first quarter results after the US market closed on Wednesday.
A staggering 700% surge in cryptocurrency trading revenues for the fourth quarter was behind a substantial jump in Hood’s overall trading-based revenues. However, Worthington believes that momentum has stalled in the first quarter, with both the stock and crypto markets falling, particularly in the second half of the quarter.
Worthington and Team estimates Robinhood users traded roughly $52 billion on Crypto during the quarter, starting from $71 billion in the fourth quarter. Worthington believes it has dropped since the beginning of the year into a “risk-off” environment that has erased much of the market’s profits. Robinhood’s assets in detention (AUC) are expected to decline by 5% from the previous quarter, but up 41% year-on-year.
The report highlights strong retail purchases in early April following tariff-related news from Washington, but Worthington suggests that activity may not be enough to lift the results for the first quarter. He warns that softer demand for margins and derivative trading (also seen in interactive competitors brokers) can place emphasis on Robinhood’s overall performance.
Worthington maintains a neutral valuation of the stock, cutting its price target from $1 to $44, suggesting it has fallen slightly below $49 from its current price.
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