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Devin ryan jmp3/4/2023 ![]() ![]() So it's an important question, especially for the near term. But in the case of Q4 and the numbers looking ahead for Robinhood, how easy is it going to be for them to meet those?ĭEVIN RYAN: Yeah. Obviously, there have been a lot of companies that have followed the roadmap of promise high. How much does that maybe matter when we think about what could come? Obviously, as our chart shows here, they've run into issues before when it comes to maybe under-delivering. So it is going to be interesting to see how much that attracts, in terms of new users, crypto-savvy users when that comes out in Q1.īut the other piece of your note that stood out to me was just kind of around estimations that they've been putting out there and guidelines for Q4. I mean, you can't really be a crypto company out there, call yourself a crypto company and not have a crypto wallet. ![]() And she's reiterated the Q1 rollout for their wallets and been testing and says those tests are going well. And I mean, we've chatted with their head of crypto, Christine Brown, on the show multiple times this year. And people are under-appreciating it, because Robinhood's not giving everybody their full product roadmap, which is smart because competitors tend to follow what they do. I would not be surprised to see Robinhood do something there. I heard your prior guest talking about NFTs. And then in 2022, we expect to see a lot of new product launches. And so on the fundamentals, we think fundamentals are better than some people appreciate because you added 25 million new investors.Īnd those investors, even if they trade at a lower rate, will still be active. You add new accounts around product launches. You add new accounts around market events. So 2021 was a much better year than even the prior record of 2020.Īnd this is not a business that ever moves on a straight line. In 2021, we estimate it was more like 15 million, probably something a little bit shy of that. When I look at the market, you had, in our estimation, about 10 million new investors come to the market in 2020. They had a soft third quarter, commentary about the reopening trade, and so retail investors are going back to work and people aren't investing. And there's a lot of negativity around the stock right now. The fundamental dynamic, I would argue, is better than most people appreciate. So it'll be really interesting to see where short interest ends up when we get the most recent print. And then when all of the float increased, what that did was it made shorting the stock a lot easier. So you might have seen some shorting in the stock. And I think investors that are savvy probably got ahead of that as well. So that creates a little bit of technical overhang, in our opinion. And so the market cap today still $16 billion, which means that a lot of that money that came in from investors when Robinhood was private, they're still very much in the money on that investment. And over the course of a month from, really, into December 1, you had 600 million shares unlock and essentially become tradable, which means that that created, in our opinion, a lot of technical selling pressure, because if you recall, Robinhood's had this meteoric rise in valuation over the past few years.Īnd earlier this year in the last fundraise before going public, they were valued at just under $12 billion. On the technical side, and I think this is underappreciated in the market, is that when they went public, they had roughly 70 million shares that were tradable in the float. There's both technical dynamics, and there's fundamental dynamics. And we've been talking about this, I think even on your show recently. So talk to me about what investors might be missing now.ĭEVIN RYAN: Sure. You have a price target of 58 though, and seem to think that there is a lot of upside for this name. So it is one of those names that's very much tied into what we saw. I mean, when we look at Robinhood, it is interesting because that was really caught up in the retail frenzy earlier this year.
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