Zacks Investment Research designated Robinhood Markets (HOOD) as its Bear of the Day. The firm assigned the stock a #5 Strong Sell rating. This negative outlook follows first-quarter results that missed analyst estimates for both revenue and earnings.
Crypto notional trading volume plummeted 48% year-over-year. Casual traders retreated from the asset class during the quarter.
Robinhood reported growth in other business segments. Gold subscribers increased by 36%. Retirement assets under custody rose by 90%. These gains were insufficient to offset the sharp decline in high-margin cryptocurrency revenue.