Financial Associated Press (Shanghai, editor Shi Zhengcheng) news, as the pace of the three quarterly reports of the US stock market is getting closer and closer, the fear of the performance of the "epidemic benefit" stocks has peaked again, and the latest to be named by analysts is Robinhood Securities, the "retail trading base camp".
Although Robinhood had also expected the company's subsequent quarterly business data to decline in its previous earnings report, JPMorgan analysts Kenneth Worthington and Samantha Trent cited data in the latest report as the company's active users and downloads in the third quarter of the plunge, combined with more stock bans to deduce that the company's stock price still has 20% room to fall by the end of the year.
JPMorgan analysts said in the report that they do not see the sustainability of the company's performance growth, but also question whether the company can generate enough competitive profit margins.
JPMorgan analysts quoted Apptopia's tracking data as saying that robinhood securities app downloads plunged 78% sequentially in the third quarter, which is also seen as a guideline for new user data. In contrast, other apps that borrowed the cryptocurrency boom (Coinbase, Binance, etc.) declined by about 50%. In addition, Robinhood daily active data also plummeted by 40% during this period, while the decline in cryptocurrency apps was about 23%, and the decline in stock brokerage Charles Schwab wealth management was only 30%.
This also means that Robinhood has not only been affected by the receding wave of hot trading sentiment, but the company has been hit harder than almost all the top competitors in the market. Analysts say Robinhood's earnings report is particularly dependent on revenue generated by the trading department, and the decline in the number of daily active users may have a more far-reaching negative impact.
According to the company's previous second quarter report disclosed in August, the company's monthly active users as of June 30 this year were 21.3 million, an increase of nearly 10 million since the beginning of this year, driving the company's net revenue to double to $565 million. Of that amount, $451 million came from user trading-related revenue, with cryptocurrencies, options and stocks accounting for 51.6%, 36.6% and 11.5% respectively.
<h3>(Monthly active users, source: Robinhood earnings report).</h3>
It should be noted that the market's concerns about the increase in Robinhood's business data are also reflected in the stock price trend. Although it doubled after going public at the end of July, it has been oscillating around $40 for more than a month, just above the $38 IPO price.
<h3>(Robinhood Daily Chart, Source: TradingView).</h3>