Robinhood Shares Fall on Atlantic Equities Downgrade

Source: Seeking Alpha

Shares of American financial services firm Robinhood Markets slipped on Wednesday following a rating downgrade from Atlantic Equities. HOOD is down 3.53%, while COIN is up 3.23%.

• Robinhood shares fell by 2.6% on premarket trading and fell even lower by 4.36% when the market officially opened.
• The decline comes after Atlantic Equities analyst John Heagerty slapped a neutral rating on the firm, down from underweight previously.
• The downgrade was attributed to issues with the steep decline of Robinhood users and the average revenue per user.
• Heagerty flagged the possibility of a further decline amid the return to pre-pandemic behavioral trends and a possible recession.
• He also noted the decline in the valuations of cryptocurrencies, which will hit volumes and order value.
• Annual revenue for the year is expected at 10% before scaling up to 25% by 2023. A negative adjusted EBITDA is seen until 2025.