Robinhood share price forecast as the crash continues

Robinhood stock price has crashed into a bear market this year as sellers remained on the sidelines. HOOD dropped to a low of $108.75, its lowest level since November 24, and ~30% below the highest level in October last year. This article explores whether the stock will rebound or continue falling this year.

Robinhood stock drops as analysts lower their estimates

HOOD stock price has remained in a deep bear market this year, erasing some of the gains made last year. 

The decline happened as investors continued to lower their targets. Barclays analysts lowered their target for the HOOD stock to $158 from the previous $171.

Needham’s John Todaro lowered the target price from $145 to $135, while Cantor Fitzgerald and Bank of America lowered their targets to $152 and $154, respectively.

As a result, the average stock target for the HOOD stock price among analysts is $136, down from $137 three months ago.

Analysts are largely concerned about the company's revenue growth and its valuation. Data compiled by Seeking Alpha shows that the company has a forward price-to-earnings ratio of 53, up sharply from the sector median of 12.6. Its valuation is much higher than its five-year average of 36.

More data shows that the company has a forward price-to-earnings-to-growth (PEG) ratio of 2.21, higher than the sector median of 1.09.

Additionally, analysts believe that the company’s revenue growth will slow down this year. The average estimate is that Robinhood’s revenue growth stood at $4.53 billion, up by 53% in 2025. Analysts expect that the revenue growth this year will be 22% to $5.52 billion.

HOOD stock has also retreated because of the ongoing crypto market crash that has affected Bitcoin and most altcoins. Bitcoin dropped from $126,200 in October to the current $92,000. The market capitalization of all tokens dropped to over $3.1 trillion.

Robinhood has become a major player in the crypto trading industry, where it offers tokens on its platform and on Bitstamp, the exchange it acquired last year. The decline continued last week after the CLARITY Act stalled in the Senate.

Robinhood has major catalysts ahead 

Looking ahead, the Robinhood stock price has some potential catalysts in the coming months. The first main catalyst will come out on February 10 when it publishes its financial results.

Analysts expect the upcoming results to show that the company’s revenue rose to $1.35 billion, up by 32% YoY. They also expect the numbers to show that its earnings-per-share (EPS) dropped to 62 cents from $1.01 a year earlier.

The results will provide more information on its recently launched products, including its tokenization and prediction marketplace.

HOOD stock price technical analysis 

The daily timeframe chart shows that the HOOD stock price retreated from a high of $153.48 in October to the current $108, its lowest level since September last year.

Robinhood stock has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a highly bearish sign in technical analysis.

It has also moved below the strong, pivot,and reverse level of the Murrey Math Lines tool. The Relative Strength Index (RSI) has continued falling, while the Percentage Price Oscillator (PPO) has moved below the zero line.

Therefore, the stock will likely continue falling, potentially to the key support level at $100. However, on the positive side, it has formed an inverse head-and-shoulders pattern, which may lead to more upside in the coming weeks.