Robinhood reported a internet lack of $423 million or $0.49 per share within the three months ended December 2021.
AFP by way of Getty Photographs
Robinhood shares dropped some 11% in after-hours commerce Thursday after it posted a internet loss for the quarter regardless of edging previous analysts’ estimates for quarterly income as sturdy 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 internet 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 internet revenue of $7 million or $0.01 per share.
Shares within the firm had been down as a lot as 11% at $10.32 in after-hours commerce Thursday following the information.
The corporate posted whole 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 information 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 belongings. It was on the middle of a buying and selling mania for meme shares in January final yr.
Buying and selling exercise rose through the pandemic when the Federal Reserve injected huge liquidity into capital markets and traders raced to money in on the increase.
However the Fed is predicted to cut back asset purchases and lift rates of interest, which analysts count on will put a damper on buying and selling.
Cryptocurrencies have been hammered not too long ago. Bitcoin, the biggest cryptocurrency, plunged 50% to $32,951 final week, lowest since July final yr.
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