In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
Robinhood Reveals Earnings on Aug 18
What will happen?
Robinhood, an American financial services company, will unveil its financial results for the second quarter of 2021 this Wednesday. If the company unveils strong results, it may be the catalyst for the stock to jump.
What is Robinhood?
Robinhood has brought stock investing in the USA to a new level. It raised the number of users from 7.2 in March 2020 to 18 million in March 2021. The platform’s success led to Robinhood's recent initial public offering (IPO).
In the long term, analysts believe the stock is well-positioned. It has a huge number of active users, which is growing every day. The company is going to expand internationally and broaden its assets class to cryptocurrencies, which is great for every company.
However, some analysts concern that the main source of Robinhood’s revenue comes from payment for order flow. It means that the company sells its customers' buy and sell orders to third-party brokerages. Therefore, if the entire stock market drops hugely, it may decrease the amounts of trading by investors. Fewer orders will result in less payment for order flow. Indeed, it’s a negative side of Robinhood’s business, but it won’t happen in the near future as economies are reopening and recovering.
Robinhood’s tech performance
The stock has opened at $36 per share. Then, it rocketed to $84.00 in only two days. However, after that, it dropped below $50.00. It has consolidated quite a long, and soon investors can start taking interest in Robinhood. Watch closely this stock. The support zone of $44.00-46.00 may stop the pair from further falling, where investors can find a 'buy the dips' opportunity.
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Good Wednesday, dear traders! Let’s look at the main news ahead of the main event that will shake the markets: the release of US CPI at 15:30 GMT+3!
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