Robinhood shares fall as crypto slump weighs on profits, offsetting gains in new businesses
Source: CNBC ·
Robinhood's third-quarter revenue met expectations, fueled by the company's expansion into options, predictions markets and other financial services.
From the source
Robinhood shares were down around 8% in pre-market trading on Wednesday as investors digested weaker-than-expected third-quarter earnings despite growth in options trading and prediction markets. Here's how the brokerage performed in its quarter ended Sept. 30, compared with Wall Street estimates, based on a survey of analysts by LSEG: Robinhood's net income fell to $468 million, or 51 cents per share, from $556 million, or 61 cents per share, a year ago. Revenue represented a 12% increase from $1.27 billion in the same quarter last year. Despite that gain, transaction-based revenue of $867 million came in below Wall Street estimates from StreetAccount of $879 million, putting focus on whether Robinhood can sustain momentum across its trading businesses and reduce its reliance on volatile market activity. Robinhood has been diversifying its business as it tries to expand its brokerage app into a broader financial services platform. Options trading and event contracts have become…
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