Shares of Robinhood Markets Inc (HOOD  ) tanked in early trading on Thursday, after the company Wednesday reported its second-quarter results.

Here are the key analyst takeaways:

  • JPMorgan analyst Kenneth Worthington maintained a Neutral rating, while raising the price target from $99 to $103.
  • BTIG analyst Andrew Harte reaffirmed a Buy rating and price target of $125.
JPMorgan: Robinhood Markets reported diluted earnings of 62 cents per share, significantly higher than consensus of 44 cents per share, Worthington said in a note. While activity remained strong during the quarter, this was widely expected, and the earnings beat was due to lower operating expenses and other income, he added.

The breakdown of the company's revenues indicates "increased diversification of business," the analyst stated. Management lowered their full-year expense guidance to $2.675-$2.775 billion, reflecting around $110 million in efficiency gains, "which we suspect were sourced from both increasingly AI-enabled workflows and the announced ~10% lay-off," he further wrote.

BTIG: Robinhood Markets reported record revenues, with two new businesses surpassing $100 million in annual revenues and traditional active trading benefiting from continued market share gains, Harte said. The surprise in the quarter was the company's bottom-line strength, he added.

Operating expenditure leverage, which boosted earnings in the second quarter, is likely to continue going forward as reflected by the guidance, the analyst stated. Investors are likely to "fixate on" the soft net deposit trends in July, which when extrapolated suggests net deposits of $12 billion in the third quarter compared to $19 billion in the year-ago quarter, he further noted.

HOOD Price Action: Shares of Robinhood Markets had declined by 2.23% to $87.84 at the time of publication on Thursday.