(Jan 28): Commission-free brokerage Robinhood Markets Inc on Thursday posted a $423 million net loss in the latest quarter, and its shares tumbled as much as 15% in after-hours trade even as revenue edged past analysts’ estimates as strong crypto trading boosted transaction volumes. Robinhood reported a net loss of $423 million or $0.49 per share in the three months ended December. A year earlier, which was before its IPO, the company posted net income of $7 million or $0.01 per share.
Highlights
- Commission-free brokerage Robinhood Markets Inc on Thursday posted a $423 million net loss in the latest quarter, and its shares tumbled as much as 15% in after-hours trade.
- Revenue edged past analysts’ estimates as strong crypto trading boosted transaction volumes.
- Robinhood’s transaction-based revenue from cryptocurrencies jumped 304% to $48 million in the fourth quarter.
- The company’s monthly active users declined 8% from the previous quarter to 17.3 million as retail investors pulled back from the market.
- It was at the center of a trading mania for meme stocks in January last year, when the Federal Reserve injected massive liquidity into capital markets.
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