Things have certainly looked better for trading platform Robinhood in the lead up to its second-quarter results on Wednesday August 3.
Shares in the NASDAQ-listed company hit an all-time low of US$6.90 in May after first-quarter revenues fell 43%, coming in at US$57mln below estimates.
“The popping of the meme stock bubble along with sharp declines in Bitcoin has eviscerated Robinhood Markets' business model, along with the share price,” said Michael Hewson, chief market analyst at CMC Markets UK.
Although Robinhood deals in traditional stocks and crypto, Hewson noted that the company is doubling down on the latter, “however the recent declines in Bitcoin and other cryptos are likely to make this challenging”.
The company is expected to post losses of US$0.23 per share, which is at least an improvement on first-quarter losses of US$0.45 per share.
HOOD is currently changing hands at US$8.80, nearly 80% below its July 2021 debut price of US$38.