HOOD Stock Topples After Robinhood Earnings Reveals 47% Decrease in Crypto Revenue
Robinhood Markets shares slipped about 6% in after-hours buying and selling Tuesday after the retail brokerage reported a 34% quarterly drop in cryptocurrency income, dragging total first-quarter outcomes beneath Wall Street expectations.
The Menlo Park agency posted $346 million in first-quarter revenue, or $0.38 per share, narrowly lacking analyst estimates of $0.39 whilst earnings rose 3% from a 12 months earlier.
Crypto Revenue Slides as Bitcoin Cools
Crypto transactions generated $134 million in income through the quarter, down from $221 million in the prior interval. Bitcoin (BTC) fell 22% over the identical window.
Total income reached $1.07 billion, in need of the $1.14 billion analysts had projected. The miss arrived whilst equities, choices, futures, and prediction markets posted double-digit progress or file volumes, the corporate mentioned.
Trading charges drove a lot of the platform’s features final 12 months, when HOOD inventory peaked at $153.86 in October alongside crypto’s broader run.
Robinhood inventory dipped on this report, and was buying and selling for $82.05 as of this writing.
Prediction Markets and Tokenization Cushion the Slide
Chairman and CEO Vlad Tenev pointed to the agency’s increasing position throughout buyer funds in a press release.
“Robinhood is more and more positioned on the heart of our clients’ monetary lives,” he stated in the printed.
Wagers routed via Kalshi-powered prediction markets logged file volumes, supported by a one-cent transaction price.
Robinhood additionally launched the public testnet for Robinhood Chain, an Ethereum (ETH) layer-2 community constructed round tokenized property.
Total platform property stood at $307 billion, down from $324 billion on the finish of final 12 months however 39% greater year-over-year.
The European tokenized shares product, which gives exposure to private companies including OpenAI and SpaceX, has processed greater than 100 million transactions since launch.
The after-hours sell-off pushed HOOD to roughly $82, effectively off the October peak. The path ahead will depend on whether or not prediction markets and tokenization can offset the cooling in digital asset buying and selling.
The publish HOOD Stock Topples After Robinhood Earnings Reveals 47% Decrease in Crypto Revenue appeared first on BeInCrypto.
