JPMorgan: Robinhood's encryption business revenue is expected to hit a record by the end of 2024, before declining in Q1.

PANews April 30 news, according to CoinDesk, JPMorgan analyst Kenneth Worthington predicts that Robinhood (HOOD) may find it difficult to sustain record cryptocurrency trading revenue in Q4 of 2024, and the volume of digital asset trading may decline in Q1 of 2025. The trading platform is set to announce its Q1 financial report after the market closes on May 1, Eastern Time. The report shows that Robinhood's cryptocurrency trading revenue surged 700% in Q4 of last year, driving a significant rise in overall trading revenue. However, affected by the dual hit of stocks and bonds in the late first quarter and the pullback in the cryptocurrency market, it is expected that the trading volume of crypto will drop from $71 billion in Q4 to $52 billion in that quarter. The assets under custody (AUC) are expected to decrease by 5% quarter-over-quarter to $183.3 billion, but still show a 41% rise year-over-year. Despite the surge in retail buying driven by U.S. tariff policies in early April, analysts believe it is difficult to reverse the downturn seen in the first quarter. Weak demand for margin and derivatives trading may further weigh on performance. JPMorgan maintains a "neutral" rating, lowering the target price by $1 to $44, implying about a 10% downside from the current stock price of $49.