Will HOOD stock rise or fall after Robinhood’s earnings on Feb. 10?

HOOD stock price rose by over 2% on Monday, continuing a recovery that started on Friday when it surged by over 13% as American equities and the crypto market bounced back.

Robinhood shares jumped to $84, up significantly from the year-to-date low of $72 as focus shifts to the upcoming quarterly earnings.

Robinhood to publish its Q4 earnings on Feb. 10

A key catalyst for the HOOD stock is the upcoming fourth-quarter earnings, which will shed more color on its growth and profit trajectory.

Data compiled by Yahoo Finance shows that the average estimate is that its revenue jumped by 32% in the fourth quarter to $1.34 billion, driven by the options market and its Bitstamp acquisition.

If this estimate is correct, its annual revenue will be $4.53 billion, up 53% from 2024. Its annual earnings per share is expected to come in at $2.04, up sharply from the $1.56 it made in the same period a year earlier.

Robinhood’s business has thrived in the past few years, even as competition in the trading industry has jumped, with companies like Webull and SoFi taking some market share.

The most recent results showed that its funded customers rose to over 26.8 million from 24.3 million in Q3’24. Robinhood Gold subscribers rose to 3.88 million, while total platform assets soared to $333 billion.

The company has performed well due to its strong position in the options, stocks, and crypto markets. It also benefited from ongoing innovation, which has enabled it to launch tokenized assets in its European market.

The company has also moved into the booming predictions market, which handles billions of dollars weekly.

Robinhood stock is often highly volatile after its earnings are released. For example, it dropped from $139 to $125 when it released its results in November. This retreat accelerated, pushing the stock to $102 a few weeks later.

Wall Street analysts are largely bullish on the company. Needham analysts recently reiterated their buy rating with a $135 target. Cantor Fitzgerald has a strong buy rating, while Piper Sandler has an overweight rating.

HOOD stock price technical analysis 

The daily timeframe chart shows that the HOOD stock price remains in a strong downward trend, moving from a high of $154 in October to the current $82.

Robinhood remains below the 50% Fibonacci Retracement and the Supertrend indicator. Worse, the spread between the 50-day and 200-day Exponential Moving Averages has continued to narrow, suggesting it may soon form a death cross pattern.

Therefore, the most likely HOOD share price forecast is highly bearish, with the initial target to watch being at $71.40, its lowest this year. A move below that level will signal further downside, potentially to the 78.6% Fibonacci Retracement level at $60.