JPMorgan Chase: Expects Robinhood Crypto Business Revenue to Decline in Q1 Following Record High at the End of 2024

BlockBeats News, April 30, JPMorgan analyst Kenneth Worthington predicted that Robinhood (HOOD) may struggle to sustain its record-breaking cryptocurrency trading revenue in the fourth quarter of 2024, and the first quarter of 2025 may see a decline in digital asset trading volume. The trading platform is set to release its first-quarter earnings report after the market close on May 1. The report indicates that Robinhood's cryptocurrency trading revenue surged by 700% in the last quarter of the previous year, driving a significant increase in overall trading revenue. However, due to the late-quarter stock and bond sell-off and the cryptocurrency market pullback in the first quarter, the quarterly cryptocurrency trading volume is expected to drop from $71 billion in the fourth quarter to $52 billion. The Assets Under Custody (AUC) are expected to decline by 5% to $183.3 billion quarter-over-quarter, but still show a 41% year-over-year growth.

Despite the retail buying frenzy stimulated by the U.S. tariff policy in early April, analysts believe it will be challenging to reverse the first-quarter downturn. Weak demand for margin and derivative trading could further drag down performance. JPMorgan maintains a "Neutral" rating with a target price cut of $1 to $44, implying about a 10% downside from the current $49 share price. (CoinDesk)