HOOD - Off with it's head! Robinhood earnings for AH 04/28/2022

What up everyone. Today we are going to be covering my dear friend Robinhood (HOOD). This piece of shit since their last earnings report has just been steadily on a slow ride downhill while being on fire for the entire trip.

HOOD will be reporting earnings this Thursday 04/28/2022 in AH . And once again, I don’t feel things are going to look great for them. Here are some of the catalysts I’ve been looking at that lead me more to the negative side.

Crypto Wallets: About 2 weeks ago, crypto wallets went live for 2 million users on a wait list that still use the Robinhood platform. Whereas HOOD believes the wallets will draw more intrest in their crypto platform. But there are two factors that lead me to believe this will hurt them more than help. For one, their wallets are only capable of holding crypto that is traded on their platform. And number two being that crypto trading on Robinhood used to be stuck in their brokerage, but now there are 2 million users that now have the ability for a mass exodus. It will be interesting to hear how their user count numbers differ from their last earnings report in which they informed everyone that they had lost 1 million users since their earnings prior to that one.

Shiba Inu: “Oh my God. Just wait until Robinhood list Shiba Inu. That shit is going to moon!”

How many times did this statement get thrown around for months? Too damn many. Well two weeks ago Robinhood listed Shiba Inu. Guess what? It totally didn’t moon. Yes it had a nice 20% run upon news of the listing, but very quickly lost all of that momentum only to fall back to it’s starting price before the boost. Very tough read on this to me. I don’t know whether to interpret this as the desire for the meme coin has fallen off, or has the amount of crypto trading on Robinhood just fallen off? My money is on the latter. Let’s not forget also that they still offer the least amount of crypto options as compared to many of their competitors.

Website traffic: Visits to Robinhood.com have fallen drastically for months now. From Dec 2021 to March 2022 there was a total drop in visits to the site of 1 million users. That’s huge for a 4 month span. Just from Feb to March was a total loss of 400k visits to the site. It is not looking good for them indeed.

New All Time Lows: HOOD is now in similar territory to where it was at in their last earnings. Upon the announcement of their abysmal performance, HOOD dropped to it’s prior all time low of $9.93. It has bounced off of that low once since their last earnings and proceed to break it on 04/26/2022 with a new all time low of $9.85. It then proceeded to hit another new low of $9.21 in AH upon news of the company letting go of close to 10% of it’s staff.

And with this news, I will be doing as usual and playing against HOOD for earnings. New features that were announced since their last report such as extended hours trading being lengthened and ETF investing aren’t going to boost growth for this dumpster fire. It is a slow, slow sinking ship. I personally will be looking for HOOD to hit the $7 range after this earnings report on Thursday. I will probably gamble with a few puts for earnings, but honestly may just go short on some shares to play around during the algo drops in AH. Their last earnings drop was quickly recovered in AH and Theta gang fucked a lot of people on options.

This is not financial advice and please do your own research.

They’ve also just fired 9% of employees.

I saw. That’s AH drop to the low $9 range got me all excited.

Vlad says the firings weren’t for financial reasons, but I think he’s full of shit. The company has to be bleeding money especially with the stock price in the current level it’s at. The thing has been falling pretty much since it’s IPO date. One thing I am curious about though is that I’ve heard before (but haven’t been able to confirm yet) that a company has to be publicly listed for one year before they can do a share offering. If that’s true, that means HOOD can’t do a share offering to raise funds until end of July 2022.

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Grabbed some $8 Puts 5/6 - with current SPY movement I think even if earnings are a bit better than expected it could drag it down a bit

For reference.

Q4 2021 Transaction Revenue was 264mil
(Options Revenue 163mil)
(Crypto Revenue 48mil)

Q1 2022 Transaction Revenue was 198mil
(Options Revenue 127mil)
(Crypto Revenue 54mil)

Q4 2021 MAU 17.3mil
Q1 2022 MAU 15.9mil

So it looks like HOOD still continuing to bleed users and losing revenue. They did implement the new extended hours trading and wallet recently which won’t be reflected until next earnings but still don’t think unless the economy turns around or rather crypto imo, will it turn back up.

I’m ready to see this thing trickle down to $5 over the next few months. I’m still curious if a company has to be listed for a year before they can do a share offering? If so, HOOD isn’t going to be raising any funds until end of July.

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Some interesting news and new rev stream -


“Robinhood launches stock lending program in revenue diversification push”

“To qualify for the fully-paid lending program, Robinhood users must have $5,000 in total account value, at least $25,000 in reported income or some trading experience, he said.”

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This could be worth a watch into next week. I’m hearing SBF was trying to block sell his hood stake at $9 a share on friday but couldnt find a buyer, he could end up selling on the open market.


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SBF currently “under supervision” in the bahamas, whether that means he is under house arrest or in prison I don’t think is known so it’s unclear if he’s able to sell his hood stake.

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He doesn’t have control of those shares anymore.

Among the investments on the balance sheet that were most liquid for FTX were shares of Robinhood Markets valued at $470 million, connected to ownership by FTX CEO Sam Bankman-Fried.

Bankman-Fried was interested in selling the stake in Robinhood, and was soliciting dealmakers on the messaging app Signal, according to the report. The Robinhood shares are now owned by Emergent Fidelity, which was not listed in the bankruptcy filing.

The report said Bankman-Fried was willing to sell the Robinhood shares for around $9, compared to a market price of $10.47 at Friday’s close.


Ok I was wrong. It seems this sly dog has the HOOD shares in a holding company that is owned by SBF.

Here’s a link to their 13D: https://sec.report/Document/0001140361-22-018827/

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