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JPMorgan: Expects Robinhood's cryptocurrency business revenue to decline in Q1 after hitting a record at the end of 2024

ChainCatcher news, according to CoinDesk, JPMorgan analyst Kenneth Worthington predicts that Robinhood (HOOD) may struggle to sustain its record cryptocurrency trading revenue in the fourth quarter of 2024, with a potential decline in digital asset trading volume in the first quarter of 2025. The trading platform is set to announce its first-quarter financial results 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, due to the dual impact of a stock and bond market downturn in the later part of the first quarter and a correction in the cryptocurrency market, it is expected that the trading volume for that quarter will drop from $71 billion in the fourth quarter to $52 billion. The assets under custody (AUC) are expected to decline by 5% quarter-over-quarter to $183.3 billion, but still show a year-over-year growth of 41%.Although retail buying was stimulated by U.S. tariff policies in early April, analysts believe this is unlikely to reverse the downward trend in the first quarter. Weak demand for margin and derivatives trading may further drag down 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.
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