Why Robinhood Stock Is Plummeting Today

Robinhood (NASDAQ: HOOD) banal is getting deed with large sell-offs Wednesday pursuing the company's latest quarterly report. The company's stock terms was down 14.3% arsenic of 1:15 p.m. ET. At the aforesaid constituent successful the regular session, the S&P 500 was down 0.3%, and the Nasdaq Composite was down 0.4%.

Robinhood published its first-quarter results aft the marketplace closed yesterday, posting income and net that fell abbreviated of the market's expectations. As of this writing, the banal is present down astir 38% successful 2026.

Robinhood's Q1 results missed the mark

Robinhood notched a nett of $0.38 per stock connected revenue of $1.07 cardinal successful the archetypal quarter, coming successful below the mean Wall Street expert estimate's telephone for a per-share profit of $0.39 connected income of $1.14 billion. Net involvement gross jumped 24% higher twelvemonth implicit twelvemonth to scope $359 million, and transaction-based gross roseate 7% twelvemonth implicit twelvemonth to deed $623 million. With wide gross inactive up 15.4% twelvemonth implicit year, Robinhood's Q1 show was acold from unspeakable -- but investors are focusing connected indicators that could constituent to maturation deceleration and borderline pressures for the business.

What's adjacent for Robinhood?

With its Q1 report, Robinhood raised its outlook for yearly adjusted operating expenses and stock-based compensation by astir $100 cardinal -- bringing the full projected combined class scope to betwixt $2.7 cardinal and $2.825 billion. On the heels of results past 4th that missed the mean Wall Street targets, immoderate investors look to beryllium bristling astatine the guidance for accrued expenses this year.

Should you bargain banal successful Robinhood Markets close now?

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