Earnings: Winners and Losers

Case in point Losers: Robinhood

Earnings is Making and Breaking Companies with Spectacular Declines

Just a little note for the 2nd NASDAQ correction week.

As the equity market appears to be at the start of a bear market, Earnings reports this year are offering up some make or break winners and losers.

Earnings at this period is all about guidance.

Robinhood gave poor guidance and showed an actual decline in users. Stock-trading app Robinhood gave a bleak revenue forecast for the first quarter of 2022 on Thursday as it’s latest earnings report showed a decline in monthly users.

Robinhood was down 6.45% today, but after hours it’s already down another 15%. Tomorrow might be a good buying day for some of the growth technology names.

For premium users I’m going to give an extended Buy List at the end of January. As too many names are reaching attractive price points. Though I’m not sure Robinhood qualifies as one of those names I’m looking at.

• The newly public brokerage anticipates first-quarter revenue of less than $340 million, down 35% compared to 2021.

• Monthly active users fell to 17.3 million last quarter from 18.9 million in the third quarter.

• Robinhood’s stock is more than 86% off its most recent high since the trading app’s July 2021 public debut.

Robinhood in 2022 is behaving a bit like an anti-meme stock. Maybe the Reddit Rebellion is having their revenge.