The biggest surprise of
today's earnings reports came from Robinhood
Markets. The red-hot app-based brokerage firm said
late today that its accounts actually slipped in the third quarter.
Robinhood had 22.4 million funded accounts in the third quarter, down from 22.5
million three months earlier. That came as a big shock to analysts and
investors, who have grown used to rapid growth from the free-trading innovator.
Robinhood had added 10 million accounts in the first half of the year. The
company also forecast a weaker than expected fourth quarter.
Robinhood shares were down
8.5% on the news.
Barron's Avi
Salzman said the numbers were
"a sign that the meme stock frenzy that fueled the company’s growth has
lost its steam." He notes that cryptocurrency trading fell to just $51
million in the latest quarter, down from $233 million a quarter earlier. That's
a steep drop in what had quickly become Robinhood's growth engine. Here's more
from Avi:
Investors had already
started to sour on Robinhood’s stock ahead of the report. The stock rose in the
weeks after its initial public offering in July, but it has hit a rough patch
recently, closing Tuesday at $39.57, just 4% above its opening price on its
first day of trading.
You can read the rest of his story here.
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