Investing.com – Robinhood stock (NASDAQ:HOOD) plunged more than 8% in Thursday’s premarket as the company behind the popular trading app warned of people going slow on trading in the ongoing quarter.
The company said many things went in its favor in the last quarter but it now expects considerably fewer new funded accounts in the ongoing quarter than in the previous three months. It thus sees lower revenue in the current quarter.
Total revenue soared 131% to $565 million in the second quarter as retail traders from the Reddit gang and everywhere else piled on the platform to trade in cryptocurrencies and equities.
At $233 million, cryptocurrencies contributed to more than half of the $451-million revenue Robinhood earned from transactions on the platform. More than 60% of Robinhood accounts traded cryptocurrencies in the second quarter, the company said.
A 169% jump in operating expenses dwarfed the jump in revenue. Along with $528 million in costs associated with the change in fair value of convertible notes and warrant liability, they dragged the company into losses which stood at $502 million.
The company had reported a profit of $58 million in the same quarter last year.