Recent Performance and Earnings Expectations
Robinhood Markets, Inc (NASDAQ: HOOD) experienced volatility following its previous earnings release. The company reported a loss of 9 cents per share for the third quarter, beating the consensus estimate of a loss of 10 cents per share but falling short on revenues of $467 million against a $478.2-million estimate.
As Q4 earnings approach, analysts estimate a loss of 1 cent per share on revenues of $456.81 million.
Market Sentiment and Recommendations
Mizuho analyst Dan Dolev maintained a Buy rating on Robinhood and raised the price target from $14 to $15, demonstrating continued confidence in the company.
Additionally, ARK Investment Management, led by Cathie Wood, has been actively acquiring shares of Robinhood, notably adding 120,020 shares across two different ETFs, indicating a positive outlook for the stock’s future performance.
Trading Strategies and Technical Analysis
From a technical perspective, Robinhood’s stock is exhibiting a bullish pattern above the 50-day simple moving average (SMA), a potential indication of upward momentum. However, it is crucial to acknowledge the inherent uncertainty associated with holding stocks or options over an earnings report.
Given the stock’s recent performance, traders and investors may consider specific scenarios:
- If Robinhood experiences a bullish reaction to its earnings and breaks above the current pattern on increased volume, there is potential for a 15% upward movement, targeting around $13 per share. This would affirm a new uptrend.
- Conversely, bearish traders are monitoring for a negative market response, leading to a drop below the eight-day exponential moving average and the 50-day SMA, potentially finding support at the 200-day SMA.
- Notably, bullish volume and the relative strength index (RSI) suggest further upside potential, with resistance at $12.77 and $13.95, and support at $11.63 and $10.56.