Gasparino tweet moves Robinhood stock
Fox Business senior correspondent Charlie Gasparino discusses Robinhood stock increase on ‘The Claman Countdown.’
Robinhood is bracing for a slowdown despite reporting strong second quarter earnings on Wednesday.
The commission-free trading app, which rose to popularity earlier this year as a result of the trading frenzy related to meme stocks like GameStop and AMC, posted a net loss of $502 million, or $2.16 per diluted share compared with a net income of $58 million, or $0.09 per diluted share, a year ago. Total net revenues surged 131% to $565 million, compared to $244 million during the same period a year ago.
Transaction-based revenues jumped 141% to $451 million, compared to $187 million a year ago. Options revenue increased 48% to $165 million, up from $111 million a year ago, while cryptocurrency revenue rose to $233 million, compared to $5 million a year ago. Meanwhile, equities transaction-based revenue decreased 26% to $52 million, compared with $71 million a year ago.
|HOOD||ROBINHOOD MARKETS, INC.||49.80||+3.13||+6.71%|
ROBINHOOD GETS BOOST AS CONGRESS DECLINES BAN – FOR NOW – ON SALES TACTIC
According to the company, over 60% of its funded accounts placed their first trade in cryptocurrencies rather than equities. Approximately 59% of funded accounts traded equities, down from 66% a year ago.
The company's net cumulative funded accounts grew 130% in the second quarter to a total of 22.5 million, up from 9.8 million a year ago. Monthly active users increased 109% to 21.3 million, up from 10.2 million a year ago. Average revenue per user was $112 in the second quarter, compared to $115 a year ago, and Robinhood now boasts $102 billion in total assets under custody, up 205% from $33 billion a year ago.
While Robinhood supports a portfolio of seven cryptocurrencies, approximately 62% of its cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, compared to 34% in the previous quarter.
"If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected," the company warned in a 10Q filing.