PANews reported on April 30 that according to CoinDesk, JPMorgan analyst Kenneth Worthington predicted 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, but affected by the double kill of stocks and bonds in the late first quarter and the correction of the cryptocurrency market, the amount of crypto trading in the quarter is expected to drop from US$71 billion in the fourth quarter to US$52 billion. The size of assets under custody (AUC) is expected to drop 5% month-on-month to US$183.3 billion, but still increase 41% year-on-year.
Although retail buying was stimulated by the US tariff policy in early April, analysts believe that this is unlikely to reverse the decline in the first quarter. Weak demand for margin and derivatives trading may further drag down performance. JPMorgan Chase maintained a "neutral" rating and lowered the target price by $1 to $44, implying a downside of about 10% from the current share price of $49.
