- HOOD Stock price is consistently declining, facing rejection from higher levels.
- Robinhood Markets Inc. has a very negative profit margin.
Robinhoods Markets Inc. (NASDAQ: HOOD) is a financial services company and it also is a very well-known stock broker in America. It offers commission-free trading of stocks, ETFs, and cryptocurrencies. It was founded by Vladimir Tenev in 2013 and Baiju Bhatt. They have more than 23 million active users and the company has its headquarters in Menlo Park, California.
The current market cap on each employee of Robinhood Markets Inc. is $3.62 Million, and the company has a gross margin of $86.52%. In the last trading session, the reported traded volume for HOOD stock was 5.58 Million shares. Additionally, the average volume in the last three month period for the stock was 7.86 Million.
Robinhood Markets Inc. has released its second-quarter results in which it reported an advance of 54.4% in revenue. The reported revenue of the company for Q2 was $491 Million.
The company does not have reliable financial ratios. This could be due to poor performance of the company over the time. The stock has a ROE of -11.79% and return on assets stands at -2.89%. The current market cap of the stock is $8.330 Billion.
Robinhood Markets Inc. Stock Performance Analysis
Robinhoods Markets Inc. made an overall revenue of $1.38 Billion in the year 2022 but it lost all of it in its expenses. The company incurred operating expenses of nearly double the revenue of the company. It paid $1 Million in taxes and this resulted in a gross profit of $1.167B.
Price Targets For HOOD Stock
The 13 analysts of Tradingview are expecting the price to hit the level of $24.00 in the long-term. The expected target is 162.58% above the CMP. Even the expected average price is 38.53% above the current trading price.
HOOD Stock Declining Again; Can We See New All-Time Lows This time?
The price of HOOD stock has been consistently declining, just after days of its listing. Until now, the HOOD stock price has declined by more than 85% and it is still in a downtrend. HOOD stock attempted to shift its trend and participate in a new rally with buyers, especially when it started forming higher highs in May 2023 and broke out towards a bullish structure in July. However, this bullish attempt failed, and the price has since resumed its decline. This suggests that despite some initial positive signs, the stock’s overall trend remains bearish.
Currently, the HOOD stock price is making lower lows and is consistently declining. The stock has made bearish engulfing candles on the daily timeframe and is constantly moving toward the lower levels.
Due to the sudden change in trend of the price, the EMAs have formed a death cross on the charts. The stock price is trading below both the 50-day and the 200-day EMAs.
HOOD stock’s RSI is trading in bearish territory. Currently, the RSI value is hitting the oversold zone level of 30. It has also declined below the 14-day SMA.
Conclusion
Robinhood Markets Inc. has a very bad profit margin and this has resulted in poor financials over the time. This represents the lack of management in the company. The financial ratios are also neutral to bearish. The HOOD stock price has been consistently following a downtrend ever since its listing. Recently, the stock has made bearish candlesticks on the charts and indicators like the EMAs and the RSI are also supporting the bearish outlook.
Therefore, we can see further lower levels in the stock in the upcoming days in the short term.
Technical Levels
- Support levels- $7.60 and $8.30
- Resistance levels- $ 11.30 and $13.20
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
