News Markets: Citi Downgrades Robinhood, Says FTX Fallout Will Weigh on Crypto Trading Revenue The bank downgraded the trading platform to neutral from buy, with a lowered price target of $10. #News #Business #Crypto

Robinhood Markets (HOOD) faces potential headline risk from imminent SEC market structure proposals, a cautious stock market outlook and potential fallout from the FTX collapse hitting crypto trading revenue, Citi (C) said in a research report Tuesday. The bank downgraded its rating on the stock to neutral from buy and cut its price target to $10 from $11. Robinhood shares rose 0.2% to $9.58 in premarket trading. The stock has fallen around 40% this year. The collapse of FTX and the resulting fallout has a number of potential implications for Robinhood, the report said. These include the potential liquidation of 56.3 million shares owned by FTX founder Sam Bankman-Fried, the removal of FTX as a potential acquirer, and lower crypto trading revenue due to the “substantial price declines and material deterioration in investor confidence. Citi expects Robinhood’s trading revenue to drop over 50% next year after a more than 50% decline in 2022. The bank notes that Robinhood has $7 in net cash per share, which should support the stock. By Will Canny, Dec 13, 2022, https://www.coindesk.com/markets/2022/12/13/citi-downgrades-robinhood-says-ftx-fallout-will-weigh-on-crypto-trading-revenue/

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