Robinhood has recorded a crash in prices on Thursday to $44.69 after the company reported earnings for the first time since its IPO listing.
Robinhood Markets Inc (NASDAQ: HOOD), a premium share stock trading app, has registered a dip in prices to $44.69 after the company reported its earnings for the first time since its IPO listing. On the third day of the market, the prices of RobinHood shares have experienced a downward curve and have fallen by a considerable 47% after rising to $85 on August 4.
Robinhood Meme Stock Run Crashes as Share Prices Dip by 10%
The stock trading app has said that they have secured $565 million in revenue in their second-quarter earnings. A sizable amount of revenue was procured through Dogecoin (DOGE), a cryptocurrency that was initiated by the firm as a joke.
The company has also stated that the revenue acquired through cryptocurrency transactions has experienced a surge and has increased manifold to 52% which constitutes an approximate amount of $233 million. Similarly, more than 60% of its funded accounts are traded in crypto. Robinhood’s crypto business has independently reported that a significant revenue amounting to 62% has been obtained via dogecoin. This has been a clear indication that the company has managed to acquire one-third of revenue solely via dogecoin proceedings.
Robinhood’s stock had briefly witnessed a surge in prices when the app activity had somehow managed to impress young retailers. On August 4, 175.8 million shares were traded, marking the company’s first IPO day. The official symbol of the organization “HOOD” was trending as a top ticker on Reddit WallStreetBetsTracker swaggy stocks on that particular day. It was also one of the top traded stocks on Fidelity. Robinhood’s executives have not yet given any comments on revenue forecasts owing to the uncertainty of the domain.
Robinhood’s CFO Jason Warnick has commented that the organization has frequently experienced volatile prices from time to time, which is one of the primary reasons why they could not make any predictions in the short term. He further stated that they had previously anticipated the Q3 earnings to have seasonal bumps and lower trading activity across the platform which is the main reason that has promoted lower revenues and fewer funded accounts than the ones recorded in Q2. Warnick also reiterated that he does not resonate with the idea of Robinhood being addressed as a meme stock.