Insightful Analysis of Robinhood Markets Inc's Financial Health and Market Position

Shares of financial services company Robinhood (NASDAQ:HOOD) fell 16.3% in the morning session after the company reported underwhelming third-quarter earnings that missed Wall Street's revenue, users, EBITDA, and EPS expectations. Notably, sales declined quarter on quarter, suggesting that the momentum from retail traders might not be as strong as in recent times. Overall, this was a weaker quarter.

Robinhood shares plunged Thursday after the online brokerage company missed Wall Street’s quarterly revenue expectations due to a customer promotion program. Monitor these key chart levels.

Robinhood Markets missed third-quarter profit and revenue estimates because of promotions to gain new customers.

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The company missed consensus revenue expectations, analysts said.

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(Reuters) -Shares of Robinhood Markets fell 14% on Thursday after more than doubling in value this year, as incentives aimed to attract customer assets hurt the retail trading platform's third-quarter results. The incentives reduced third-quarter net revenue of the company by $27 million, CFO Jason Warnick said late on Wednesday. Robinhood has been looking to draw sophisticated investors in a push to capture market share from traditional heavyweight brokerages such as Charles Schwab and Fidelity.

Robinhood Markets Inc (HOOD) reports a 36% revenue increase and record customer assets, while expanding its product offerings and managing operational challenges.

Microsoft issues lower-than-expected second-quarter revenue guidance, while Meta Platforms expects rising infrastructure expenses next year. Apple and Amazon.com are scheduled to report earnings after the closing bell Thursday.

Shares in trading platform Robinhood plummeted in a major market turnaround, tumbling 12.4% in extended trading after its third-quarter earnings report failed to meet analysts' expectations.

Although the revenue and EPS for Robinhood Markets (HOOD) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

HOOD earnings call for the period ending September 30, 2024.

Robinhood Markets (HOOD) delivered earnings and revenue surprises of -5.56% and 3.66%, respectively, for the quarter ended September 2024. Do the numbers hold clues to what lies ahead for the stock?

Microsoft and Meta topped views late, though their stocks diverged. Robinhood and two bitcoin plays sold off.

In its third quarter earnings, trading platform Robinhood Markets (HOOD) fell short of revenue estimates ($637 million vs. the $663.5 million that was expected) while posting adjusted earnings of $0.17 per share, just one cent shy of estimates of $0.18. Citizens JMP Director of Financial Technology Research Devin Ryan joins Julie Hyman and Josh Lipton on Market Domination Overtime to weigh in on the company's results. Robinhood shares have fallen by over 10% in extended hours. "The bigger picture here is their assets, customer assets are up about 50% from the beginning of the year. So when you zoom out, we feel really good about the direction of the company," Ryan says on Robinhood's earnings print. "The September metrics were a little bit soft and we expected it. And that's what happened." Ahead of the 2024 election, Robinhood rolled out a new election betting market feature for retail traders. "That resonates with a small sliver of potential investors. But if it resonates with some, they want to provide access to it. And so that's when I think about what Robinhood is building," Ryan tells Yahoo Finance. "They're providing access to all things in financial markets on the trading side. And then over time, evolving the platform to be able to really help customers with a lot more of their financial service needs." To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Luke Carberry Mogan.

Financial services company Robinhood (NASDAQ:HOOD) fell short of the market’s revenue expectations in Q3 CY2024, but sales rose 36.4% year on year to $637 million. Its GAAP profit of $0.17 per share was also 3.4% below analysts’ consensus estimates.

Robinhood on Wednesday reported third-quarter revenue and profits that missed Wall Street expectations, sending shares down about 9% in afterhours trading. The online brokerage posted net income of $150 million, or 17 cents a share, on revenue of $637 million for the third quarter.