As a seasoned crypto investor who has witnessed the highs and lows of this volatile market since its inception, I find myself both intrigued and perplexed by Robinhood’s Q3 results. The impressive year-on-year surge in crypto trading volume and revenue is undeniably encouraging, signaling a growing interest in digital assets among retail investors.
As a researcher delving into financial trends, I’ve noticed that Robinhood unveiled their Q3 outcomes recently, showcasing a substantial upsurge in crypto trading activity and income compared to the same quarter of 2023. However, even with this remarkable year-on-year growth, Robinhood fell short of Wall Street predictions, leading to a 12% dip in HOOD share prices during after-hours trading post the announcement.
As a crypto investor, I was intrigued to learn that Robinhood, the trading platform, more than doubled its cryptocurrency trading volume and revenue compared to last year during their third quarter earnings. However, despite this growth in crypto interests, Robinhood fell short of industry expectations, causing their shares to plummet by over 12% during after-hours trading.
Robinhood Assets Under Management Increase by 76%
Robinhood’s shares dropped by 12.4% following the release of their Q3 earnings, as they fell short of Wall Street’s expectations. However, despite this, the company managed to stay in the black due to a significant increase in both crypto trading volume and revenue during the quarter – up by 112% and 165%, respectively.
Based on their financial report, Robinhood revealed a net income of $150 million and total revenue of $637 million. However, these figures fell below expectations, leading to a significant drop in HOOD stock prices. Robinhood’s earnings per share came in at $0.17, which was lower than the projected $0.18 as per Zacks Consensus Estimate. Additionally, their reported revenue was 3.6% less than the anticipated amount.
Although the company’s cryptocurrency trading volume increased by 112% compared to the same quarter in Q3, it experienced a significant drop when compared to the $36 billion recorded in Q1 of 2024 and the $21 billion in Q2. Additionally, reports indicated a decrease in crypto revenue from Q2’s $81 million figure.
Although Robinhood’s Q3 earnings fell short of expectations, the company managed to expand its holdings it manages by an impressive 76% year-over-year, reaching $152.2 billion. This growth is largely due to soaring cryptocurrency values, with the value of its crypto assets under management climbing up to $19.5 billion – a significant increase from $14.7 billion in Q4 of 2023, representing a 32.3% rise.
According to Robinhood’s CFO, Jason Warnick, the company is satisfied with its performance this year. He noted that the past three quarters’ revenue has been the highest for the company so far, indicating a notable success.
Robinhood Shares Skyrocket in 2024
Despite the company’s dip in share price, HOOD is still up over 160% this year, currently trading for $24.05. Robinhood’s interest in crypto started in 2018 when it began offering BTC and ETH trading in selected US states.
Despite HOOD experiencing a setback with its Q3 earnings release, the crypto market has experienced a significant surge this week. Bitcoin (BTC) surpassed the $70,000 mark, momentarily reaching $73,000. At the moment, BTC is trading at $70,661, representing a 4.34% increase over the past week.
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2024-10-31 19:02