Shares in popular stock-trading app Robinhood plunged over 10% after the company reported fourth-quarter earnings that failed to impress investors, while also issuing a dismal sales forecast for early 2022 as trading activity continues to slow.
Robinhood’s shares, which fell nearly 7% to around $11 a share on Thursday, plunged another 11% in after-hours trading after the company’s quarterly earnings report.
The popular stock-trading app reported earnings slightly below Wall Street’s expectations: For the fourth quarter, revenue slipped slightly to $363 million from $365 million, while Robinhood’s loss of 49 cents a share was bigger than the loss of 45 cents expected by analysts. after refinitive.
The trading platform’s total number of accounts rose from 22.4 million last quarter to 22.7 million by the end of 2021 — although monthly active users fell to 17.3 million from 18.9 million in the previous quarter.
What particularly spooked investors, however, was Robinhood’s dismal revenue guidance for the next quarter: The company is projecting revenue of less than $340 million — well below the nearly $450 million analysts were expecting, according to FactSet became.
Transaction-based revenue on Robinhood’s platform declined slightly to $264 million in the fourth quarter, with cryptocurrency trading revenue making up just $48 million of that number, down slightly from $51 million last quarter.
As of Thursday’s close, the stock is down more than 70% from its July 2021 IPO price, with shares down more than 30% this month alone.