Coverage Addition Report: Robinhood Happiness Declines as Adoption Increases

Robinhood Markets, Inc. (NASDAQ:HOOD)

Robinhood is a financial services company that facilitates the trading of stocks, ETFs, and cryptocurrencies via a mobile application. The company pioneered the commission-free trading model, generating its revenues from interest on customers’ balances, selling order information, and margin lending. Robinhood is known for being popular with a younger demographic and, more recently, its involvement with the $GME short squeeze of early 2021. Robinhood recently went public, despite regulatory concerns surrounding ‘payment for order flow’ (PFOF) which accounted for 81% of the company’s 21Q1 revenue.

Current Outlook: Neutral

Key Points

PI Mentions still show relative strength, declining from all-time highs: +18% YoY,-29% QoQ (90d MA).

Consumer Happiness has declined with increased adoption: 60% positive in the past quarter (-2% YoY).