Robinhood initiated with a Hold at Needham

Needham initiated coverage of Robinhood with a Hold rating without a price target. The analyst sees a balanced risk/reward profile, citing the company’s “still-declining” crypto trading volume and uncertainty around the return of the “retail stock trader” on monthly active users. The firm is positive on Robinhood’s revenue diversification, saying the company captures considerable interest income in bear markets, then captures high transaction revenue in bull markets when interest rates are low. However, the diversification benefits are already built into the share price, the analyst tells investors in a research note.