Macroaxis is giving Robinhood (NASDAQ:HOOD) a 74% probability of bankruptcy based on their analysis of the company’s current fundamentals.
Robinhood Markets probability of bankruptcy is used to show its chance of financial distress over the next two years of operations under current economic and market conditions.
As of May 4, 2023, EBITDA is expected to decline to about (1 B).
“Our calculation of Robinhood Markets probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures.
To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting Robinhood Markets odds of financial distress.
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection.
Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors.”
Based on the latest financial disclosure, Robinhood Markets has a probability of bankruptcy of 74%.
This is 82.9% higher than that of the Capital Markets sector and significantly higher than that of the Financials industry.”
Robinhood Bankruptcy News
Recently, Robinhood falsely noted on its trading platform that AMC Entertainment had filed for bankruptcy.
“What the DUCK !!!!! I am getting multiple reports that Robinhood briefly posted today that AMC filed for bankruptcy.
How can companies like Robinhood do this?
So ludicrous, so wrong, so irresponsible.
On Friday, we report Q1 earnings, and will announce our sizable cash position,” said AMC CEO Adam Aron in a statement on social media.
The CEO even ran a poll suggesting suing Robinhood where more than 26,000 people supported the action.
Macroaxis has given AMC Entertainment a 10% less chance than that of Robinhood to file for bankruptcy.
Will Robinhood go bankrupt?
I personally doubt it, but the analysis conducted by Macroaxis is interesting nonetheless.
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