Robinhood’s (HOOD) stock has plummeted following the company’s third-quarter report, which revealed relatively low cryptocurrency trading income. On October 26, the famous commercial trading firm released its third-quarter report, with cryptocurrency making up $51 million (19 percent) of the period’s overall $267 million in transaction-based income. The review’s disclosure on Tuesday corresponded with a roughly 10% decline in the value of HOOD to $35.70, although the stock has since rebounded 1.9 percent to settle at $36.
The company’s crypto operations generated $51 million in revenue in Q3, a 78 percent decrease from the company’s record $233 million in revenue in Q2. Robinhood’s crypto earnings were boosted by the Dogecoin (DOGE) market, with the ‘Memecoin’ accounting for a stunning 62% of total crypto income. The company reported a total net income of $365 million during the quarter, far under FactSet’s forecast of $437.1 million.
“BREAKING: #Robinhood stocks fell more than 8% in after-hours trading after Q4 income clocked in at $365 million, falling short of expectations of $431.5 million. HOOD $”—Mr. Whale (@CryptoWhale) October 26, 2021
Vlad Tenev Shows Optimism
Robinhood claimed in its third-quarter report that its company was affected by a variety of reasons, including timing, price fluctuations, popular trading habits, and unexpected market occurrences. According to the firm, the same difficulties may recur in Q4. “In the lack of material shifts in the industry climate or exogenous occurrences,” the report stated, “We anticipate this might result in quarterly earnings of no more than $325 million and entire year revenues of under $1.8 billion.”
Whereas crypto operations have slowed, Vlad Tenev, Director of Robinhood, expressed positivity about the company’s long-term opportunities in crypto assets, emphasizing the innovative goods and processes developed for retail traders in Q3, such as a virtual wallet that will allow users to withdraw and deposit digital money to and from the exchange: “Till date, over a million users have registered on our cryptocurrency wallets queue. With actual phone help available 24 hours a day, we feel Robinhood is on its way towards becoming the most reliable and accessible solution for mainstream and crypto traders. Plus, in the future, we’re dedicated to providing tax-advantaged pension plans to assist everyone in investing for the long haul,” he added.
Shiba Inu To Be Listed On The Platform
In wider measures than cryptocurrency, Robinhood’s third-quarter statement revealed that the company’s total net sales of $365 million were down 35% from the last quarter. While the company reported a total deficit of $1.32 billion, or $2.06 per basic share, in the third quarter, that contrasted with a deficit of $502 million, or $2.16 per share, in the second quarter. Regular users per month also decreased from 21.3 million in the second quarter to 18.9 million in the third.
Robinhood’s user community, on the other hand, maybe poised to grow in Q4, with rumors circulating all around the Shiba Inu (SHIB) industry that the dog-themed coin may shortly be registered on the platform. However, there is no data to support this. On Oct. 23, Robinhood sent a poll to its users asking about the digital currencies they acquired in the previous 3 months, with SHIB entering the list.
“NEWS FLASH: Robinhood is conducting this poll for specific platform customers. They’ve included #SHIB as a possible answer! They are conducting market research to determine what their users desire.” – Shibalnu News (@ShibalnuNews). According to CoinGecko, the value of SHIB has increased by approximately 69 percent in the last week to $0.00004759, while the coin has increased by a whopping 568 percent in the last month.
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