Buying and selling app Robinhood sinks 11% in after-hours commerce after posting loss

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 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 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 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, based on 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 in the course of the pandemic, with homebound buyers utilizing its app to commerce shares and different property. It was on the middle of a buying and selling mania for meme shares in January final yr.

Robinhood was on the middle of a buying and selling mania for meme shares like GameStop in January 2021.NurPhoto through Getty Photos

Buying and selling exercise rose in the course of the pandemic when the Federal Reserve injected large liquidity into capital markets and buyers rushed to money in on the growth.

However the Fed is anticipated 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 just lately. Bitcoin, the biggest cryptocurrency, plunged 50% to $32,951 final week, lowest since July final yr.

Written by trendingatoz

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