Robinhood Beats Q2 Earnings Expectations Amid Cautious Outlook
Retail brokerage firm Robinhood posted a second-quarter earnings beat, reporting adjusted earnings per share of $0.62 and revenue of $1.31 billion, up 32% year over year.
Despite beating analyst expectations, some analysts remain cautious about the company's growth prospects, including reaching its ambitious goal of a $1 trillion market capitalization.
Crypto trading activity weakened during the quarter, with crypto revenue falling 38% year over year to $100 million from $160 million. However, options and equities helped drive transaction revenue growth.
Robinhood CEO Vlad Tenev said that reaching a $1 trillion market capitalization 'will be very difficult,' but possible. Analysts have lowered their price targets on the stock in recent days, with Barclays cutting its target to $105 from $122 and Goldman Sachs lowering its target to $118 from $137.