Robinhood’s Crypto Meltdown: JPMorgan’s Bold Take!

by

Markets

What to know:

  • Robinhood’s crypto revenue missed expectations, weighing on shares despite a broader earnings beat. 📉💸
  • JPMorgan said the upside surprise was driven mainly by tax benefits, not operating strength. 🧠🧮
  • The bank lifted its price target to $130 from $122, citing higher crypto and prediction market volumes. 🚀📈

Wall Street bank JPMorgan (JPM) called Robinhood’s (HOOD) third-quarter results solid but lower quality, as weaker crypto revenue and tax benefits drove much of the earnings beat. 🧨📉

The bank said the roughly 15% earnings per share (EPS) beat was mostly due to a lower tax rate tied to stock-based compensation from the 52% rise in the share price, in a report published Thursday. 📊💸

Analysts led by Kenneth Worthington expect the trading platform’s margins to keep improving and raised their price target on the shares to $130 from $122, while reiterating their neutral rating on the stock. 🤷‍♂️⚖️

The shares slumped 11% yesterday, closing around $127. 🪦💸

Crypto was the main drag, with net revenue of $268 million missing both Street and JPMorgan estimates, sending shares lower despite strong volume growth. 🚨📉

The bank said Robinhood’s crypto fee rate slipped to 67 basis points from an expected 68, as management continues to adjust pricing. 💸📉

Prediction markets offset some weakness, though the analysts cautioned that the segment depends on a small group of active traders. 🧠🤝

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2025-11-07 13:05