Robinhood Trading Volume Surges 72% Despite Shares Falling After Q3 Earnings Miss

Robinhood saw a significant rise in trading activity, with crypto trading up 112%, driving revenues to $319 million, a 72% jump from last year. Despite the gains, its shares dropped 12.4% in after-hours trading due to missing Wall Street expectations.

Trading platform Robinhood posted robust growth in Q3 2024, largely driven by a surge in both equity and crypto trading volumes. Equity trades increased by 65%, while cryptocurrency trades skyrocketed by 112%, raising the company’s transaction-based revenues to $319 million—a remarkable 72% increase compared to Q3 of the previous year.

Robinhood’s crypto revenue alone jumped by 165% to reach $61 million, significantly contributing to its return to profitability. However, its overall revenue of $637 million and net income of $150 million fell short of Wall Street estimates, prompting HOOD shares to fall 12.4% in after-hours trading.

The company reported earnings per share (EPS) of $0.17, below the Zacks Consensus Estimate of $0.18, with total reported revenue also falling 3.6% below expectations at $661.2 million. Additionally, despite the impressive year-on-year increase, Q3 crypto trading volumes declined from $21 billion in Q2 2024 and $36 billion in Q1 2024.

Robinhood has been actively expanding its services to cater to a wider investor base, adding futures and index options trading to its mobile app, as well as launching a desktop platform to attract more experienced traders. The company also recently announced a $200 million deal to acquire Bitstamp, a crypto exchange, to enhance its offerings for institutional investors in the U.S., with the acquisition expected to close in the first half of 2025.

Robinhood’s assets under custody grew 76% year-on-year to reach $152.2 billion, with its crypto assets alone totaling $19.45 billion, up 32.3% from Q4 2023. Despite the recent drop in its share price, HOOD shares have risen 128% this year and are currently trading at $28.21.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)