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Atlantic Equities Downgrade Pushes Robinhood Shares Lower -Breaking

by Mike Robinson

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Sam Boughedda

Investing.com — Robinhood Markets Inc (NASDAQ:) fell over 3% Tuesday after it was downgraded by analysts at investment firm Atlantic Equities.

Atlantic has downgraded the stock from overweight to neutral. Analyst John Heagerty stated that the prior rating was “predicated upon rapid growth continuing” and an expansion in operating margins.

In a research note, the analyst stated that Robinhood experienced a “broad cessation” of user growth during the third quarter. Guidance for the fourth quarter indicates that Robinhood’s growth rate will be significantly lower than what the investment company had originally anticipated.

Heagerty is also convinced that investing in new products could lower the company’s adjusted income growth. He believes the switch to crypto trading can increase revenue volatility. 

Heagerty stated that the result was: “We have significantly lowered our revenue forecasts and EBITDA estimates, and our price target has fallen to $35.”

Tuesday saw HOOD share closing in negative territory, at $33.87

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