Last week Robinhood reported its Q1 2022 results. I guess investors’ expectations were super low going into the earnings call, as the stock price didn’t crash despite the decreasing revenues and increasing losses. Nevertheless, I think it is too early to write this company off.
Thanks for reading, really appreciate it! I do not plan to provide a price target (or direction). Price target without a timeline is useless, price target with a timeline is a pure guess.
My intention with this newsletter is a) help investors understand the fundamentals of Fintech companies (i.e. many people think that Affirm only provides 0% APR loans, and thus, very few understand how they make money), b) provide a facts-based opinion on mid-term prospects of income (and free cash flow) growth for a particular company.
I believe in the idea that a growing income (and FCF) will eventually translate into higher stock price. Hope this helps!
As per Robinhood holding. I have a tiny position, but purely to understand the price dinamics. As I wrote in this earnings review, at this point I don’t have a view on what is the “normalized” level of earnings for this company, and thus, it is impossible to form an opinion on future growth prospects.
good read - for me it would be interesting if you added two things at the end (1) do you have the company in your portfolio, (2) where do you see it going (buy, neutral, sell)
Hi, Robert!
Thanks for reading, really appreciate it! I do not plan to provide a price target (or direction). Price target without a timeline is useless, price target with a timeline is a pure guess.
My intention with this newsletter is a) help investors understand the fundamentals of Fintech companies (i.e. many people think that Affirm only provides 0% APR loans, and thus, very few understand how they make money), b) provide a facts-based opinion on mid-term prospects of income (and free cash flow) growth for a particular company.
I believe in the idea that a growing income (and FCF) will eventually translate into higher stock price. Hope this helps!
As per Robinhood holding. I have a tiny position, but purely to understand the price dinamics. As I wrote in this earnings review, at this point I don’t have a view on what is the “normalized” level of earnings for this company, and thus, it is impossible to form an opinion on future growth prospects.
good read - for me it would be interesting if you added two things at the end (1) do you have the company in your portfolio, (2) where do you see it going (buy, neutral, sell)