Robinhood shares dropped some 11% in after-hours commerce Thursday after it posted a web loss for the quarter regardless of edging previous analysts’ estimates for quarterly income as robust crypto buying and selling boosted transaction volumes on the on-line brokerage.
Robinhood, in its third set of outcomes as a public firm, reported a web lack of $423 million or $0.49 per share within the three months ended December. A yr earlier, which was earlier than its IPO, the corporate posted web revenue of $7 million or $0.01 per share.
Shares within the firm have been down as a lot as 11% at $10.32 in after-hours commerce Thursday following the information.
The corporate posted complete income of $363 million for the fourth quarter ended Dec. 31, in comparison with $318 million a yr earlier, beating analysts’ expectations of $362.14 million in income, in accordance with IBES knowledge from Refinitiv.
Transaction-based income from cryptocurrencies jumped 304% to $48 million, whereas income from fairness buying and selling declined 35% to $52 million.
Robinhood loved a robust run through the pandemic, with homebound traders utilizing its app to commerce shares and different property. It was at the center of a trading mania for meme shares in January final yr.
Buying and selling exercise rose through the pandemic when the Federal Reserve injected large liquidity into capital markets and traders raced to money in on the growth.
However the Fed is predicted to reduce asset purchases and lift rates of interest, which analysts anticipate will put a damper on buying and selling.
Cryptocurrencies have been hammered just lately. Bitcoin, the most important cryptocurrency, plunged 50% to $32,951 final week, lowest since July final yr.
