After a staggering 700% surge in crypto trading revenue during Q4 2024, Robinhood (HOOD) is now bracing for a significant slowdown in Q1 2025. JPMorgan analyst Ken Worthington projects a decline in digital asset volumes, attributing it to a "risk-off" environment that has dampened market enthusiasm.
๐ Key Highlights:
Crypto Trading Volume Drop: Estimated at $52 billion in Q1, down from $71 billion in Q4.
Assets Under Custody (AUC): Expected to fall 5% quarter-over-quarter to $183.3 billion, though still up 41% year-over-year.
Stock Outlook: JPMorgan trimmed its year-end price target for HOOD to $44 from $45, maintaining a neutral rating.โ
The anticipated decline underscores the challenges Robinhood faces in sustaining its crypto momentum amid shifting market dynamics. While the platform benefited from a retail-driven crypto boom in late 2024, the current environment reflects a more cautious investor sentiment.โ
๐ Market Implications:
Robinhood's Q1 earnings, set to be released after the U.S. market close on Wednesday, will provide further insights into the platform's performance and the broader crypto trading landscape. Investors and analysts alike will be watching closely to gauge the resilience of retail crypto engagement in the face of market headwinds.โ
#Robinhood: #CryptoRevenue #JPMorgan #CryptoTrading #MarketUpdate
