According to the Zhitong Finance APP, J.P
According to the Zhitong Finance APP, J.P. Morgan analyst Kenneth Worthington has released a research report stating that they will give Robinhood (HOOD. US) a "underweight" rating with a target price of $35.
The bank believes that the stock price of Robinhood is "very fragile", because the recent trading volume of Dogecoin Coin is weak, and "from next week, the stock may have considerable liquidity".
Analyst Worthington pointed out that although trading volume remained strong in the third quarter, it was significantly slower than the level in the second quarter. "Compared with other Cryptocurrency, we didn't see the rebound of Dogecoin in October." The trading volume of Cryptocurrency industry fell by about 40% in the third quarter, but the trading volume of Dogecoin fell by about 75%, which indicates that the trading volume of Cryptocurrency in Robinhood may decline more than that of other Cryptocurrency industry peers.
It is worth noting that in the second quarter, 62% of the company's Cryptocurrency trading revenue came from Dogecoin.
He said: "In addition, with the decline in transaction volume, we expect that Cryptocurrency pfof (order flow payment) may also face additional pressure, which reduces our forecast for Robin Hood's third quarter Cryptocurrency revenue."
In addition, he expects stock trading to remain weak; Robin Hood's stock trading revenue decreased by 60% in the second quarter, with a 40% decrease in PFOF per transaction.
However, Worthington stated that option trading may be a highlight of Robinhood, with trading volume increasing compared to the second quarter. Margin loans may also be strong, as analysts predict that Robin Hood's revenue from margin loans in the third quarter will be $45 million.
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