CRYPTO

Robinhood shares 10% tanks after crypto earnings fell three-quarters

Robinhood shares (HOOD) fell sharply behind the firm’s Q3 results, which posted less than expected crypto trading earnings.

The popular retail trading firm released its 3 quarterly report on October 26, with crypto accounting accounting for $ 51 million (19%) of the quarter’s total transaction-based revenue of $ 267 million.

HOOD fell nearly 10% to $ 35.70, according to the report released on Tuesday, but at the time of writing, the price has risen 1.9% to $ 36.40.

Generating $ 51 million from crypto transactions in Q3 is down 78% compared to the firm’s second Q2 record of $ 233 million. Robinhood’s crypto revenue was boosted by the Dogecoin (DOGE) community last quarter, with memecoin representing 62% of crypto revenue.

The firm posted total net income of $ 365 million for the quarter, which fell below Wall Street analysts’ forecast of $ 437.1 million, according to Factset.

Robinhood said in its Q3 report that its business has been affected by a number of factors, including seasonality, market volatility, retail business behavior and unforeseen market events. The firm said similar problems could continue in Q4.

“In the absence of any change in the market environment or outreach events, we believe this could result in quarterly revenue of more than $ 325 million and full-year revenue of less than $ 1.8 billion,” the report said.

With crypto activity declining, Vlad Tenev, CEO of Robinhood, outlined his optimism for the firm’s long-term prospects in digital assets, as he emphasized in Q3 new products and services built for retailers, such as a digital wallet that would eventually enable users to and from the platform. To withdraw and deposit crypto:

“To date, more than one million people have joined our crypto wallet waiting list. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retailers and crypto investors.”

“And looking forward, we are committed to providing tax-exempt retirement accounts to help everyone invest in the long run,” he added.

Related: The Robinhood Crypto Wallet Weightlist hits 1 million people

In terms of expanding from crypto to Robinhood’s Q3 report, the firm’s total net revenue of $ 365 million fell 35% from the previous quarter. However, the firm posted a net loss of $ 1.32 billion or $ 2.06 per share, compared to a loss of $ 502 million or শেয়ার 2.16 per share in Q2.

Monthly active users also fell to 18.9 million in the last quarter from 21.3 million in Q2. However, as Robinhood’s user base grows in Q4, there is speculation around the SHIB Inu community that the dog-themed token may soon be listed on the platform.

Although there is no evidence to confirm this. Robinhood sent a survey on October 23 to its customers about the crypto assets they have bought in the last three months, SHIB has compiled the list.

According to data from CoinGecko, the price of SHIB has risen about 69% in the last seven days, standing at 00 0.00004759 at the time of writing, while the amount of assets has increased by 568% in the last 30 days.