Shares of Robinhood Markets (NASDAQ:HOOD) spiked over 6% in after-hours trading yesterday following the announcement that the company will buy back $55 million worth of shares bought by Sam Bankman Fried (SBF) in May 2022. Further, Robinhood chose to forego $500 million in stock-based compensation as the company missed analysts’ Q4FY22 earnings and revenue estimates. This addressed investors’ concerns to some extent.
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Year-to-date, HOOD is up 29.6%, boosted by the general rally in tech stocks.
The Gist of Robinhood’s Q4 Results
The company’s diluted loss of $0.19 per share came in higher than analysts’ estimates of $0.15 per share. Also, quarterly revenues of $380 million (up 5% year-over-year) missed analysts’ expectations by roughly $15 million.
Additionally, Robinhood’s monthly active users (MAUs) totaled 11.4 million, declining by 800,000 sequentially. Notably, Average Revenue Per User (ARPU) improved to $66 from $63 in the previous quarter. Assets under custody (AUC) fell 4% sequentially to $62 billion, owing to “lower market valuations for growth stocks and crypto assets,” the company added. Meanwhile, net deposits registered a 30% annualized growth rate, totaling $4.8 billion.
For the full year of Fiscal 2022, Robinhood posted a diluted loss of $1.17 per share on revenues of $1.36 billion (down 25% year-over-year).
Is HOOD Stock a Good Buy?
On TipRanks, analysts have a Hold consensus rating on HOOD based on two Buys, three Holds, and one sell rating. Also, the average Robinhood Markets stock prediction of $13.40 implies a nearly 28% upside potential from current levels.
