Robinhood Shares Fall as Crypto Buying and selling Income Declines Sharply



Robinhood (HOOD) shares had been falling greater than 8% in after-hours buying and selling Tuesday after the zero-commission buying and selling platform missed badly on income expectations as its cryptocurrency income fell sharply from the second quarter’s file excessive.

  • Robinhood stated its crypto revenues fell to only $51 million within the third quarter, down from a file $233 million within the second quarter. The corporate stated the diminished crypto buying and selling exercise led to considerably fewer new funded accounts and decrease income within the quarter as in comparison with the second quarter.
  • Whole income for the quarter was $365 million, in need of analyst estimates of $437.1 million, based on FactSet. The corporate reported an adjusted web lack of $2.06 per share, versus analyst estimates of a lack of $0.67.
  • Robinhood stated that over a million prospects have signed up for the ready record for its crypto pockets, which is certainly one of its “most closely requested merchandise.”
  • The corporate additionally launched recurring crypto investments, permitting prospects to routinely purchase crypto, commission-free, on a schedule of their selection.
  • Shares had been down 8.2% in after-hours buying and selling to $36.34 on Tuesday following the discharge of the report. The corporate went public on July 28 at an IPO value of $38 per share and closed down 8% on its first day of buying and selling.

UPDATE (Oct. 26, 20:57 UTC): Added share value info in fifth bullet level.



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