Robinhood Securities Fall More Than 8% After Decreasing Income From Cryptocurrency Trading

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According to the report, Robinhood stock lost 8.5% of its value on Oct. 26. This happened against the backdrop of the company's announcement of a 78% decrease in trading income from $ 233 million to $ 51 million in the period from July to September. 

Robinhood Trading Income Report
Robinhood Trading Income Report

If in the second quarter of 2021 trading accounted for 51.7% of the total income of Robinhood, then in the third quarter its share decreased to 19.1%.  

Indicators for the third quarter of 2021 were significantly below analysts' expectations. Net income amounted to $ 365 million instead of the expected $ 437.1 million, loss per share - $ 2.06 against expectations of $ 0.67. The platform's indicators have also decreased. The number of accounts fell from 22.5 million to 22.4 million, while analysts predicted an increase and the number of active traders - from 21.3 million to 18.9 million.

The company attributed the decline in performance to a "bad season," including volatility, as well as unforeseen events and the behavior of retail traders. 

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