Shares of Robinhood (HOOD) slipped in after-hours trading even after the financial services platform reported third-quarter earnings that topped estimates. Indeed, earnings per share came in at $0.61, which beat analysts’ consensus estimate of $0.54 per share.
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Furthermore, sales increased by 100% year-over-year, with revenue hitting $1.27 billion. This also beat analysts’ expectations of $1.21 billion. The jump was primarily driven by growth in interest-earning assets and an increase in transactions. Specifically, the recent hype around cryptocurrencies like Bitcoin brought in $268 million for the company, a 300% increase compared to Q3 2024, while options revenue grew by 50% to $304 million.
In addition, the number of Funded Customers increased by 10% year-over-year to 26.8 million, with average revenue per user jumping 82% to $191. As shown in the image below, the average revenue per user figure is currently the highest it has been in the past five years.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HOOD stock based on 13 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $144.29 per share implies that shares are trading near fair value. However, it’s worth noting that estimates will likely change following today’s earnings report.
