Robinhood Markets Inc reported its financial results for Q2 on Wednesday and swung into a profit. Although, its shares fell by approximately 8.0% after-hours.
Mizuho Analyst Dan Dolev sees upside in “HOOD” with a prediction of $14 per share. He stated on CNBC’s “Closing Bell” that Robinhood is gaining market share from Coinbase, crushing it on options and the VIX is bringing down prices.
The financial technology company earned 3 cents on every dollar of revenue in the second quarter. Comparatively, analysts had only predicted a penny of revenue and $473 million of losses.
Robinhood’s second quarter saw a loss of 1 million users, however, Mizuho’s Dolev said on CNBC Today that this could be overturned by the success of their retirement initiative.
The online trading platform generated $31 million from cryptocurrency trading during its most recent quarter. This was down 18% on a sequential basis and accounted for 16 percent of total revenue. The company ended the quarter with $11.5 million worth of crypto under custody, which was roughly unchanged from the prior quarter.
Despite the after-hours sale, Robinhood shares have increased by over 40% for the year.
