Robinhood Stock Beat Expectations and the Stock Fell Anyway. Here's What Long-Term Investors Should Do.
The market wasn't impressed by Robinhood's Q2 report, even though it looked quite strong. Is it time to sell the stock?
Overview
Robinhood (NASDAQ: HOOD) reported its second-quarter results after the market closed on July 29, and the company posted sales and earnings that topped Wall Street's expectations. The company posted earnings per share of $0.62 on revenue of $1.31 billion, beating the average analyst estimate of $0.43 per share on revenue of $1.28 billion.
Robinhood recorded an earnings benefit of $0.14 per share in the quarter stemming from its deconsolidation of Robinhood Ventures Fund I, but even after backing out that one-time benefit, earnings per share of $0.48 still came in significantly ahead of the average forecast. Despite Q2 sales and earnings beats, the stock lost ground in subsequent trading. How should long-term investors view and respond to the stock's moves following its recent earnings report?
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Originally published at www.fool.com.