Is Robinhood Stock A Buy Right Now Ahead Of Its First Earnings Report?

Robinhood Stock IPO

On July 28, Robinhood priced 55 cardinal shares astatine $38 a share, raising $2.1 billion. But the pricing came in astatine the debased extremity of its expected range. The banal closed the time astatine 34.82, much than 8% beneath the IPO price.

The institution is known for pioneering commission-free banal trading with nary relationship minimums. The level allows users to marque unlimited commission-free trades successful stocks, exchange-traded funds, options and cryptocurrencies. Robinhood ranked among the best online banal brokers successful 2021 for Mobile Trading Platforms/Apps and Margin Investing/Interest Rate.

The app is fashionable among young and first-time investors and traders. Millions of young investors flocked to Robinhood during the meme-stocks trading mania for stocks  similar GameStop (GME) and AMC Entertainment (AMC). Excitement astir cryptocurrencies similar Bitcoin besides fueled involvement successful the app.

"While we are lone six years into our journey, we person already seen profound transformations successful however radical deliberation astir their money," Chief Executive Vlad Tenev and Chief Creative Officer Baiju Bhatt said successful written remarks with the Robinhood IPO filing.

"The adjacent procreation of investors is younger and much divers than ever earlier and concern is present arsenic culturally applicable arsenic euphony and the arts," the executives said.

Robinhood Stock Fundamental Analysis: Huge Sales Growth

The institution had implicit 22 cardinal funded accounts astatine the extremity of the archetypal quarter. More than fractional of the customers' backing accounts said Robinhood was their archetypal brokerage account, the institution said. It has $81 cardinal successful assets nether control.

Robinhood volition study Q2 net connected Wednesday aft the banal marketplace close. Analysts expect the institution to suffer 15 cents per share. Revenue is expected to surge 114% twelvemonth implicit twelvemonth to $521 million. In the year-ago period, Robinhood earned 7 cents per stock connected income of $244.2 million.

The institution says it expects to study second-quarter gross betwixt $546 cardinal and $574 million. That's up 123% to 135% from the year-ago period. However, Robinhood estimates a nett nonaccomplishment successful the scope of $487 cardinal to $537 cardinal successful the 2nd quarter, compared with a tiny nett successful the 2nd 4th successful 2020.

HOOD Stock News

On Aug. 5, Robinhood said various shareholders volition sell up to 97.9 cardinal shares implicit time. The maximum selling terms for Robinhood banal volition beryllium 35.12 for the offering, which volition make proceeds for the shareholders of up to $3.44 billion. In response, Robinhood banal plunged implicit 27%, giving backmost a ample information of the erstwhile session's 50% surge.

Robinhood Stock Price And Technical Analysis

Robinhood banal terms tumbled implicit 6% Monday, trading astir 47.44. Shares are astir 40% disconnected the all-time precocious acceptable connected Aug. 4 astatine 85. Keep an oculus retired for a new base to form, which would connection the stock's archetypal buy point.

According to the IBD Stock Checkup, HOOD stock shows a mild 43 retired of a cleanable 99 IBD Composite Rating. The Composite Rating helps investors easy measurement a stock's cardinal and method metrics. Weak IBD Composite Ratings are mean for caller issues.

Is Robinhood Stock A Buy Right Now?

Robinhood banal is 1 of the apical IPO stocks to ticker successful the current banal marketplace rally. The institution boasts immense income maturation successful caller quarters, and the company's imaginable is encouraging amid the surging popularity of banal trading among young investors. Shares are acold from their post-IPO highs and determination is nary existent bargain point, truthful the banal isn't a bargain close now. Wait for the banal to signifier its archetypal base, which would connection an initial bargain point.

For much starring stocks and stocks approaching bargain points, cheque retired IBD Stock Lists, similar Stocks Near A Buy Zone. To spot the existent banal marketplace trend, cheque retired IBD's signature regular analysis, The Big Picture.

Be definite to travel Scott Lehtonen connected Twitter at @IBD_SLehtonen for much connected maturation stocks and the Dow Jones Industrial Average.

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