WARNING: BITCOIN IS ABOUT TO DROP AGAIN...
These notes were generated by AI and may contain inaccuracies.
Things are getting spicy. It's Ricky with Techfoot Solutions on February 10th. Robinhood is down 7.76% in after hours after reporting earnings. The company missed revenue expectations for one of its biggest quarters, based on Bitcoin hitting all-time highs. Trading activity slowed down, and guidance for 2026 is not promising.
Robinhood makes money through trading fees and payment for order flow. High trading activity boosts revenue, but slowdowns or crypto winter lower it. This explains disappointing revenue and lowered 2026 guidance.
Robinhood IPOed in 2021, reached highs of $84, crashed to $6.81, traded flat in 2023, then recovered. It's bigger now, so unlikely to hit $7, but slowdowns could lead to retracement as investors avoid premiums. Current P/E ratio is around 35 times earnings on Investing Pro, a high multiple.
Concerns from earlier video were validated by earnings and guidance. Ricky is a fan of Robinhood and wants to own it at a discount, like $50 or $30 per share, for quality companies bought on deals. Patience allows picking up overpaid stocks cheaply.
Crypto markets look weak, especially on the one-hour timeframe with lower highs and lower lows. No reversal confirmation or strong support. Testing major support at 67,000. If broken, likely retest 60,000 support.
This is Ricky's opinion; others may disagree. Ricky does not trade Bitcoin or believe in it but trades MSTR. MSTR follows Bitcoin drops more aggressively. MSTR testing support at 130, from highs of $500. Retest of Bitcoin $60,000 could mean MSTR $100, a 23% drop from 131.
MSTZ is a double leverage inverse ETF of MSTR, not for beginners. Ricky is up slightly today, expecting bigger moves after hours. If MSTR drops, MSTZ gaps up twice as much. Vice versa if MSTR rises. Bitcoin drop to $60,000 and MSTR to $100 could take MSTZ to $30, offering 100-120% ROI due to leverage and path dependencies.
Ricky sees Bitcoin weak and plans to short MSTR or go long MSTZ as Bitcoin drops (MSTR down, MSTZ up). Focus on direction and price action. Not pro-Bitcoin but supports right to invest. Advice: Do not use leverage if beginner.
Trading MSTR live with LPP team tomorrow; second link in description for one-time lifetime access payment. End the year green.
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