Robinhood Market (NASDAQ: HOOD) shares have lost nearly 75% of their value in the last six months. The slowdown in key performance indicators such as MAU (Monthly Active Users) and ARPU (Average Revenue Per User) remains a drag.
“Another area of concern for the
is Robin Hood’s limited cryptographic products. Sean Horgan of Rosenblatt Securities emphasized HOOD’s offering of cryptocurrencies, stating that the company’s “”cryptocurrency challenges are worse than we expected.””
Analysts expect HOOD to gain crypto market share and generate additional revenue through increased trading volumes and its low-cost platform. But he added, “”Looking back, the number of tokens listed is a more important driver of gradual growth and is optimistic about the company’s ability to earn as much revenue sharing as previously thought. Not. “”
So Robin Hood needs to list more tokens (currently 7) to increase market share. Robinhood CEO Vladimir Tenev addressed the issue, saying the company is “”actively working with regulators”” to list more coins. In addition, we plan to list more coins in the future.
Meanwhile, Robin Hood continued to invest in cryptocurrencies, launching cryptocurrency gifts and cryptocurrency wallets, and negotiating price transactions with crypto market makers, resulting in a doubling of rebates.
Hogan is optimistic about Robin Hood’s pricing with market makers, but added: COIN`s 2.49% for retail), it does not appear to be enough to capture market share at the rate we previously expected and, as a result, we expect crypto market share to remain subdued in the near term.”
Nevertheless, Horgan keeps a Buy rating on HOOD stock due to its lowcost crypto trading platform, new pricing agreements, and upside potential from new product launches.
Wall Street`s Take
While Horgan is bullish, crypto challenges and a slowdown in its business have kept most analysts on the sidelines. HOOD`s Hold consensus rating on TipRanks is based on 5 Buy, 6 Hold, and 2 Sell recommendations. However, owing to the substantial decline in its price, HOOD`s stock price forecast on TipRanks shows solid upside potential. The average Robinhood Markets price target of $20.17 implies 45% upside potential to current levels.”