Business

Robinhood stock falls more than 6% as crypto trading dries up

Shares of Robinhood Markets Inc. fell greater than 6% within the prolonged session Tuesday after the web buying and selling platform reported a wider quarterly loss and lower-than-expected gross sales, saying decrease crypto-related income led to “significantly fewer” new funded accounts and dragged quarterly income down.

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stated it misplaced $1.32 billion, or $2.06 a share, within the third quarter, in contrast with a web lack of $11 million, or 5 cents a share, within the third quarter of 2020, and a FactSet consensus of a lack of 67 cents a share.

Gross sales rose 35% to $365 million, in contrast with $270 million within the third quarter of 2020. Analysts polled by FactSet anticipated gross sales of $437 million for the quarter.

“Crypto exercise declined from document highs within the prior quarter, resulting in significantly fewer new funded accounts, a slight decline in web cumulative funded accounts, and decrease income within the third quarter of 2021 in contrast with the second quarter of 2021,” the corporate stated in a press release.

For the fourth quarter, a few of the components that weighed on the third quarter outcomes, “resembling seasonal headwinds and decrease retail buying and selling exercise, might persist,” Robinhood stated.

The corporate guided for fourth-quarter income “no better than $325 million” and full-year income of lower than $1.8 billion. The analysts surveyed by FactSet count on fourth-quarter income of $497 million and full-year income of $2 billion.

The corporate additionally stated it expects that new funded accounts for the fourth quarter will probably be roughly flat in contrast with the 660,000 opened within the third quarter of 2021.

Robinhood went public in July, and shares skyrocketed to greater than double its preliminary public providing worth.

https://www.marketwatch.com/story/robinhood-stock-falls-more-than-6-as-crypto-trading-dries-up-11635280647?rss=1&siteid=rss | Robinhood inventory falls greater than 6% as crypto buying and selling dries up

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