Latest news with #retailinvestors
CNA
2 hours ago
- Business
- CNA
Coinbase quarterly profit jumps on subscription revenue boost
Coinbase Global reported a sharp rise in second-quarter profit on Thursday, as gains in its subscription and services business offset a dip in trading revenue. Retail trading volumes remained sluggish in the second quarter as investor appetite remained muted amid regulatory and market uncertainty, despite a rebound in crypto prices. A bullish crypto market also prompted many retail investors to hold on to their digital assets in anticipation of higher returns, limiting trading activity. Transaction revenue fell 2 per cent to $764.3 million. However, revenue from the company's subscription and services unit — which includes businesses outside of trading — rose 9.5 per cent to $655.8 million. Net profit attributable to common stockholders rose to $1.43 billion, or $5.14 per share, in the three months ended June 30, compared with $36.13 million, or 14 cents apiece, a year earlier. Net profit was largely driven by gains on the fair value remeasurement of the company's investment in stablecoin issuer Circle and gains on its crypto asset investment portfolio, Coinbase said.
Yahoo
7 hours ago
- Business
- Yahoo
Robinhood outgrows meme frenzy era as retail trading matures
By Manya Saini and Niket Nishant (Reuters) -Robinhood's earnings highlight how the app once at the center of the meme-stock mania has evolved into a broader platform to keep retail investors engaged even during market turbulence. The trading platform reported a surge in volumes across equities, options and cryptocurrencies in its second quarter, with momentum continuing in July despite market jitters over tariffs and high interest rates. That marks a sharp contrast from 2022, when Robinhood's business was closely tethered to retail stock buying. After the Federal Reserve kicked off its rate-hiking cycle in March, the firm's trading revenue slumped by nearly half from a year earlier, as many small investors moved to the sidelines. "In 2021, when we went public, it felt to me like we were much more fragile than today," Robinhood CEO Vlad Tenev said on the earnings call on Wednesday. "But now the road map, if you look at things that we expect to deliver in the short-term, medium-term and long-term, is pretty packed," he added, referring to new products such as tokenization and perpetual futures. For the second-quarter, Robinhood reported transaction-based revenue of $539 million, up 65% from a year earlier. Options soared 46% and equities climbed 65%. Crypto revenue nearly doubled. The company has also deepened its crypto presence with a $200 million acquisition of Bitstamp in June, boosting revenue. "Retail engagement remains strong on the platform," analysts at Piper Sandler wrote in a note, adding that the variety of products was supporting the engagement, with equity and options trading volumes tracking at record levels in July, while crypto volumes are near a six-month high. MEME-STOCK FRENZY Earlier this month, a wave of meme-stock mania sent shares of several highly shorted companies, such as donut chain Krispy Kreme, retailer Kohl's and action camera maker GoPro, soaring on retail purchases but without any clear catalyst. The moves echoed the 2021 retail trading frenzy, when individual investors used Robinhood to buy shares of video game retailer GameStop, squeezing hedge funds that had taken short positions against the stock. While there have been some instances of elevated volumes this year, Robinhood CFO Jason Warnick said that the platform enjoys steady engagement even during quieter periods. "Some months will be higher than others. But we feel really good about the acquisition of new customers and the high retention rate," he added. CRYPTO BOOST Crypto trading has soared since the election of Donald Trump as U.S. president for a second term. Volumes have declined from a burst after the election, but analysts see the crypto market remaining sharply above pre-election levels. "We believe the Bitstamp acquisition solidifies Robinhood's crypto roadmap and increases crypto's future contribution to Robinhood's overall earnings, which has most frequently trended to about 10%-20% of revenue," analysts at J.P. Morgan said. Robinhood shares recently touched record highs and the company now has a market capitalization close to $94 billion. Wall Street's average rating on the stock is "buy", with at least seven brokerages raising their price targets after the market-beating earnings report.
Yahoo
7 hours ago
- Business
- Yahoo
3 Stocks That Shoppers Love But Wall Street Hates… And That Could Soar From Here
A new meme stock rally has emerged, potentially surpassing the 2021 craze in scale, according to WallStreetBets founder Jaime Rogozinski. Struggling retailers and consumer brands, such as Kohl's (KSS), GoPro (GPRO), and Krispy Kreme (DNUT) surged last week, apparently driven by retail investors mobilizing online. American Eagle (AEO) stock jumped 10% after announcing Sydney Sweeney as a brand ambassador, exemplifying how celebrity endorsements now drive trading. Meme stock traders often disregard fundamentals, instead supporting brands based on emotional or ideological reasons. For example, Trump Media (DJT) is valued at $4 billion yet generates just $1 million in quarterly revenue. More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 2 Growth Stocks Wall Street Predicts Will Soar 74% to 159% Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! If you are looking for more meme mania, here are three consumer brands that could rally from current levels, given that they are highly shorted. Meme Stock #1: Kohl's Kohl's stock erupted last Tuesday, surging as much as 105% in early trading before closing 37% higher on July 22 at $14.34. The surge appears to be driven primarily by social media hype rather than fundamental factors. With nearly 45% of Kohl's float sold short, it became a prime target for retail traders seeking to trigger a short squeeze. Trading was temporarily halted due to extreme volatility as the stock oscillated wildly between gains and losses. Kohl's business remains troubled despite the stock euphoria. Its Q1 earnings call revealed ongoing challenges, with comparable sales declining 3.9% and leadership instability following the termination of CEO Ashley Buchanan. Market experts warn that meme stock rallies typically see companies collapse back to pre-surge levels once the frenzy subsides, making ongoing gains unlikely. Out of the 12 analysts covering KSS stock, six recommend 'Hold,' one recommends 'Moderate Sell,' and five recommend 'Strong Sell.' The average stock price target for KSS stock is $7.69, 32% below the current price. Meme Stock #2: Beyond Meat Down almost 99% from its all-time highs, Beyond Meat (BYND) stock has nearly 40% of its float sold short and may be on the watchlist of meme stock traders. In Q1, Beyond Meat reported sales of $68.7 million, down more than 9% year over year amid challenges in the plant-based meat category. It posted a gross loss of $1.1 million, marking a sharp reversal from the $3.7 million profit achieved in the same period last year. Volume decreased 11.2% year-over-year, driven by weak demand in U.S. retail and foodservice channels, distribution losses as retailers moved products from refrigerated to frozen sections, and broader macroeconomic pressures affecting consumer spending. CEO Ethan Brown acknowledged this represented 'a deviation from the previous 2 quarters,' when the company had shown signs of recovery. Moreover, Beyond Meat withdrew its full-year guidance, citing elevated uncertainty. Despite operational challenges, Brown remains focused on cost reduction and improving consumer perception through new marketing campaigns, emphasizing a commitment to profitability over growth. Out of the eight analysts covering BYND stock, four recommend 'Hold' and four recommend 'Strong Sell.' The average target price for BYND stock is $2.71, 16% below the current price. Meme Stock #3: 1-800 Flowers The final meme stock on the list is 1-800 Flowers (FLWS), which has nearly 73% of its float sold short. Two analysts cover FLWS stock, with one recommending a 'Strong Buy' and the other recommending a 'Hold.' The average target price for FLWS stock is $8.50, 44% above the current price. 1-800-Flowers delivered a massive Q3 earnings miss, posting a loss of $0.71 per share against analyst expectations for a loss of $0.34, while revenue plunged 12.6% to $331.5 million. CEO Jim McCann acknowledged significant self-inflicted wounds, particularly a 'colossal screw up' with the company's order management system implementation that cost $11 million over two quarters and disrupted customer service during the critical holiday period. The Consumer Floral and Gifts segment declined 11.4%, while Gourmet Foods plummeted 18.2%. In response to these challenges, the company unveiled its ambitious 'Celebrations Wave' strategy, representing what McCann called their 'sixth wave of innovation.' The initiative aims to create a comprehensive celebrations ecosystem using AI and personalized experiences to reduce customer acquisition costs and increase engagement. The company withdrew full-year guidance amid macroeconomic uncertainty and rising marketing costs, with net debt jumping to $75 million from $9 million year-over-year, highlighting the urgent need for a strategic overhaul. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
8 hours ago
- Business
- Reuters
Robinhood outgrows meme frenzy era as retail trading matures
July 31 (Reuters) - Robinhood's (HOOD.O), opens new tab earnings highlight how the app once at the center of the meme-stock mania has evolved into a broader platform to keep retail investors engaged even during market turbulence. The trading platform reported a surge in volumes across equities, options and cryptocurrencies in its second quarter, with momentum continuing in July despite market jitters over tariffs and high interest rates. That marks a sharp contrast from 2022, when Robinhood's business was closely tethered to retail stock buying. After the Federal Reserve kicked off its rate-hiking cycle in March, the firm's trading revenue slumped by nearly half from a year earlier, as many small investors moved to the sidelines. "In 2021, when we went public, it felt to me like we were much more fragile than today," Robinhood CEO Vlad Tenev said on the earnings call on Wednesday. "But now the road map, if you look at things that we expect to deliver in the short-term, medium-term and long-term, is pretty packed," he added, referring to new products such as tokenization and perpetual futures. For the second-quarter, Robinhood reported transaction-based revenue of $539 million, up 65% from a year earlier. Options soared 46% and equities climbed 65%. Crypto revenue nearly doubled. The company has also deepened its crypto presence with a $200 million acquisition of Bitstamp in June, boosting revenue. "Retail engagement remains strong on the platform," analysts at Piper Sandler wrote in a note, adding that the variety of products was supporting the engagement, with equity and options trading volumes tracking at record levels in July, while crypto volumes are near a six-month high. Earlier this month, a wave of meme-stock mania sent shares of several highly shorted companies, such as donut chain Krispy Kreme (DNUT.O), opens new tab, retailer Kohl's (KSS.N), opens new tab and action camera maker GoPro (GPRO.O), opens new tab, soaring on retail purchases but without any clear catalyst. The moves echoed the 2021 retail trading frenzy, when individual investors used Robinhood to buy shares of video game retailer GameStop (GME.N), opens new tab, squeezing hedge funds that had taken short positions against the stock. While there have been some instances of elevated volumes this year, Robinhood CFO Jason Warnick said that the platform enjoys steady engagement even during quieter periods. "Some months will be higher than others. But we feel really good about the acquisition of new customers and the high retention rate," he added. Crypto trading has soared since the election of Donald Trump as U.S. president for a second term. Volumes have declined from a burst after the election, but analysts see the crypto market remaining sharply above pre-election levels. "We believe the Bitstamp acquisition solidifies Robinhood's crypto roadmap and increases crypto's future contribution to Robinhood's overall earnings, which has most frequently trended to about 10%-20% of revenue," analysts at J.P. Morgan said. Robinhood shares recently touched record highs and the company now has a market capitalization close to $94 billion. Wall Street's average rating on the stock is "buy", with at least seven brokerages raising their price targets after the market-beating earnings report.
CNA
8 hours ago
- Business
- CNA
Robinhood outgrows meme frenzy era as retail trading matures
Robinhood's earnings highlight how the app once at the center of the meme-stock mania has evolved into a broader platform to keep retail investors engaged even during market turbulence. The trading platform reported a surge in volumes across equities, options and cryptocurrencies in its second quarter, with momentum continuing in July despite market jitters over tariffs and high interest rates. That marks a sharp contrast from 2022, when Robinhood's business was closely tethered to retail stock buying. After the Federal Reserve kicked off its rate-hiking cycle in March, the firm's trading revenue slumped by nearly half from a year earlier, as many small investors moved to the sidelines. "In 2021, when we went public, it felt to me like we were much more fragile than today," Robinhood CEO Vlad Tenev said on the earnings call on Wednesday. "But now the road map, if you look at things that we expect to deliver in the short-term, medium-term and long-term, is pretty packed," he added, referring to new products such as tokenization and perpetual futures. For the second-quarter, Robinhood reported transaction-based revenue of $539 million, up 65 per cent from a year earlier. Options soared 46 per cent and equities climbed 65 per cent. Crypto revenue nearly doubled. The company has also deepened its crypto presence with a $200 million acquisition of Bitstamp in June, boosting revenue. "Retail engagement remains strong on the platform," analysts at Piper Sandler wrote in a note, adding that the variety of products was supporting the engagement, with equity and options trading volumes tracking at record levels in July, while crypto volumes are near a six-month high. MEME-STOCK FRENZY Earlier this month, a wave of meme-stock mania sent shares of several highly shorted companies, such as donut chain Krispy Kreme, retailer Kohl's and action camera maker GoPro, soaring on retail purchases but without any clear catalyst. The moves echoed the 2021 retail trading frenzy, when individual investors used Robinhood to buy shares of video game retailer GameStop, squeezing hedge funds that had taken short positions against the stock. While there have been some instances of elevated volumes this year, Robinhood CFO Jason Warnick said that the platform enjoys steady engagement even during quieter periods. "Some months will be higher than others. But we feel really good about the acquisition of new customers and the high retention rate," he added. CRYPTO BOOST Crypto trading has soared since the election of Donald Trump as U.S. president for a second term. Volumes have declined from a burst after the election, but analysts see the crypto market remaining sharply above pre-election levels. "We believe the Bitstamp acquisition solidifies Robinhood's crypto roadmap and increases crypto's future contribution to Robinhood's overall earnings, which has most frequently trended to about 10 per cent-20 per cent of revenue," analysts at J.P. Morgan said. Robinhood shares recently touched record highs and the company now has a market capitalization close to $94 billion. Wall Street's average rating on the stock is "buy", with at least seven brokerages raising their price targets after the market-beating earnings report.
