PANews reported on April 30 that according to CoinDesk, Morgan Stanley analyst Kenneth Worthington predicts that Robinhood's (HOOD) record cryptocurrency trading revenue in the fourth quarter of 2024 may be difficult to sustain, and digital asset trading volume may decline in the first quarter of 2025. The trading platform will release its first-quarter financial report after the market closes on May 1 Eastern Time. The report shows that Robinhood's cryptocurrency trading revenue surged 700% in the fourth quarter of last year, driving a significant increase in overall trading revenue. However, affected by the stock and bond market downturn in the late first quarter and the cryptocurrency market correction, the expected cryptocurrency trading volume is projected to drop from $71 billion in the fourth quarter to $52 billion. The assets under custody (AUC) are expected to decrease by 5% quarter-on-quarter to $183.3 billion, but still grow by 41% year-on-year.
Although retail investors were stimulated to buy due to US tariff policies in early April, analysts believe this is unlikely to reverse the first-quarter downturn. Weak demand for margin and derivative trading may further drag down performance. Morgan Stanley maintains a "neutral" rating, lowering the target price by $1 to $44, implying about a 10% downside from the current $49 stock price.
