Robinhood stock falls more than 8% as crypto trading dries up

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Shares of Robinhood Markets Inc. fell much than 8% successful the extended league Tuesday aft the online trading level reported a wider quarterly nonaccomplishment and lower-than-expected sales, saying little crypto-related gross led to “considerably fewer” caller funded accounts and dragged quarterly gross down.

Robinhood HOOD, +1.44% said it mislaid $1.32 billion, oregon $2.06 a share, successful the 3rd quarter, compared with a nett nonaccomplishment of $11 million, oregon 5 cents a share, successful the 3rd 4th of 2020, and a FactSet statement of a nonaccomplishment of 67 cents a share.

Sales roseate 35% to $365 million, compared with $270 cardinal successful the 3rd 4th of 2020. Analysts polled by FactSet expected income of $437 cardinal for the quarter.

“Crypto enactment declined from grounds highs successful the anterior quarter, starring to considerably less caller funded accounts, a flimsy diminution successful nett cumulative funded accounts, and little gross successful the 3rd 4th of 2021 compared with the 2nd 4th of 2021,” the institution said successful a statement.

For the 4th quarter, immoderate of the factors that weighed connected the 3rd 4th results, “such arsenic seasonal headwinds and little retail trading activity, whitethorn persist,” Robinhood said.

The institution guided for fourth-quarter gross “no greater than $325 million” and full-year gross of little than $1.8 billion. The analysts surveyed by FactSet expect fourth-quarter gross of $497 cardinal and full-year gross of $2 billion.

The institution besides said it expects that caller funded accounts for the 4th fourth volition beryllium astir level compared with the 660,000 opened successful the 3rd 4th of 2021.

Robinhood went nationalist successful July, and shares skyrocketed to much than treble its archetypal nationalist offering price.

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