Robinhood Beats Earnings Estimates, But Top Banks Cut Price Targets

Robinhood Markets' (Nasdaq: HOOD) second-quarter earnings report exceeded Wall Street estimates, with the brokerage platform generating $1.31 billion in revenue and $0.62 in earnings per share (EPS). This beats expectations of $1.26 billion in revenue and $0.41 in EPS.

The total net revenues increased 32% year-over-year to $1.31 billion, but crypto revenue fell 38% year-over-year to $100 million. Notably, crypto notional trading volumes reached $40 billion, with the Robinhood app volumes decreasing 35% year-over-year to $18 billion.

Despite beating estimates, Goldman Sachs and Barclays have reduced their price targets on the Robinhood stock. Goldman Sachs lowered its target from $137 to $118, maintaining a Buy rating but anticipating slower upside momentum due to growing headwinds. Barclays also decreased its target from $122 to $105, retaining an Overweight rating.

The HOOD stock closed at $86.60 on July 30, down 23% this year. The reduced price targets by top banks may indicate a cautious outlook for Robinhood's future growth and revenue potential.