Robinhood Shares Drop 12% Despite Strong Q3 Crypto Growth

• Robinhood's Q3 report revealed $150 million in net income and $630 million in revenue, yet shares dropped 12% in after-hours trading due to unmet expectations.
• Robinhood’s cryptocurrency trading volume surged 112% year-over-year, hitting $14.4 billion, with crypto revenue reaching $61 million, up 63% from the last report.
• The company may expand its crypto offerings further, potentially launching its own stablecoin inspired by PayPal’s crypto ventures.

Popular trading platform Robinhood recently released its report showing the company’s revenue, income, and performance during this year's third quarter. 

The company celebrated the numbers achieved in this recent report, particularly due to its income and revenue growth over the year. Robinhood CEO and co-founder Vlad Tenev applauded a handful of new features to the platform, including a new desktop offering, new index and futures options, and new trading tools coming to the platform. 

In total, Robinhood had a net income of $150 million – with a revenue of $630 million during this year’s third quarter. Obviously, these results are far from bad – however, industry experts were expecting even better numbers from the company. 

Analysts predicted that the trading platform would reach a $658 revenue, meaning that Robinhood missed the mark by 3.2%. As a result, HOOD shares went down by a sharp 12% in after-hours trading.

Robinhood Crypto Volume Surges

In contrast, the company’s cryptocurrency sector appears to be growing. Today’s report shows that Robinhood’s digital asset trading volume increased 112% year-over-year to $14.4 billion.

Also, the company’s assets under custody increased by 76% year-over-year to $152 billion, driven by, among other things, cryptocurrency growth this year. Transaction revenue increased by 72%, reaching $319 million so far. 

Crypto revenue by itself went up by 63% since the last report, reaching a revenue of $61 million for the platform. 

A couple of weeks ago, reports arose regarding the possibility of Robinhood investing even more in cryptocurrency. Based on the success of PayPal, the company plans on launching its own stablecoin in the future.