Robinhood Markets (HOOD) shares are down about 25% this year and more than 40% from their 52-week high of $149.41 after earnings fell short of expectations. Revenue rose 12% to $1.4 billion, but cryptocurrency-related revenue fell 55%, and earnings per share of 51 cents missed the 56 cents analysts expected. The author notes the company still has growth opportunities and is popular with young investors, but a P/E multiple just under 40 implies high growth expectations. The author says investors should wait for a lower price, since the premium is not justified given current risks.
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