Robinhood’s (HOOD) record crypto trading revenue from the last quarter of 2024 may prove hard to repeat, according to JPMorgan analyst Kenneth Worthington, who forecast a drop in digital asset volumes for the first quarter of this year.
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The online trading platform reports first quarter results after the U.S. market close on Wednesday.
The fourth quarter’s staggering 700% surge in cryptocurrency trading revenue was behind a sizable jump in HOOD’s overall transaction-based revenue. Worthington, however, sees that momentum stalling in the first quarter, citing a decline in both equity and crypto markets, especially in the latter half of the quarter.
Worthington and team estimate Robinhood users traded about $52 billion in crypto during the quarter, down from $71 billion in Q4. Worthington attributes the drop to a “risk-off” environment that erased much of the market’s gains since the start of the year. Robinhood’s assets under custody (AUC) are expected to fall 5% from the prior quarter to $183.3 billion, though still up 41% year-over-year.
While the report highlights strong retail buying in early April following tariff-related news from Washington, Worthington suggests that activity may not be enough to lift first quarter results. He warns that softer demand for margin and derivatives trading — also seen at competitor Interactive Brokers — could weigh on Robinhood’s overall performance.
Worthington maintained a neutral rating on the stock and trimmed his price target by $1 to $44, suggesting about 10% downside from the current price just below $49.
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