Investors are beginning to repose their faith in Robinhood Markets (NASDAQ:HOOD) despite the company posting a Q4 miss.
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The fourth quarter numbers indicated towards higher revenue per user and an improvement in EBITDA. While contributions from crypto fell, options transactions managed to hold their ground.
Further, the company is buying back shares from Sam Bankman’s Fried’s Emergent Fidelity Technology. Interestingly, according to Barron’s, the whole difference between HOOD surpassing or falling short of estimates for Q4 boiled down to a processing mistake to the tune of $57 million. This impacted the company’s bottom line by $0.07 during the quarter!
Overall, Wall Street has a consensus price target of $12.86 on HOOD, implying a 22.83% potential upside in the stock. While shares of the company have gained nearly 23.5% over the past month, short interest in the stock still remains elevated at about 8.1% at present.
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