With the current crypto market rise, Robinhood might be aiming for a more lucrative Q4.
Since the start of 2023, Robinhood stock prices have increased by 18%.
The total volume of crypto trading on Robinhood increased 75% month-on-month in November. On December 4th, Robinhood reported in a Form 8-K filing with the U.S SEC that the crypto notional trading volumes for November were over 75% higher than the levels seen in October 2023.
Despite this activity, trading volumes for stocks and options contracts were almost unchanged from October. After reporting a 55% year-over-year decline in crypto notional volumes in its Q3 results release, Robinhood reverses course with an impressive month.
Aiming for a Lucrative Q4
Because of this, the $467 million it made in Q3 fell short of what analysts had predicted. As a result of falling cryptocurrency volumes in 2022, transaction-based revenues fell 11% year-on-year to $185 million.
With the current crypto market rise, Robinhood might be aiming for a more lucrative fourth quarter. In a November earnings call with investors, Vlad Tenev, co-founder and CEO of Robinhood, predicted that the platform could generate “nine figures” in yearly revenue.
Retail investors are showing interest in cryptocurrency again, according to Tenev, who spoke to Yahoo Finance on December 4th. Since the start of 2023, Robinhood stock prices have increased by 18%.
On the other hand, after a peak of little over $13 in 2023, the stock has been declining since the middle of July. Following a 2.47 percent rise, Robinhood stock was trading at $9.55 earlier today.
Providing commission-free stock trading to customers in the UK is undeniably a daring move by Robinhood. However, Tenev is eager to replicate the success of the company’s US business before the epidemic by reviving the UK market via cost reductions.