Robinhood’s Q1 Crypto Revenue Projected to Decline After Record Growth

JPMorgan analyst Kenneth Worthington predicts a decline in Robinhood’s (HOOD) cryptocurrency trading revenue for Q1 2024, following a record 700% increase in Q4 2023.

Robinhood's estimated crypto trading volume for Q1 is $52 billion, down from $71 billion in Q4.
A “risk-off” environment has impacted market performance, contributing to this decline.
Assets under custody are projected to decrease by 5% to $183.3 billion, but remain up 41% year-over-year.
Weak demand for margin and derivatives trading may also affect overall performance.
Worthington holds a neutral stock rating and reduced the price target to $44, indicating a potential 10% downside from current levels near $49.