Latest news with #Robinhood
Reuters
4 hours ago
- Business
- Reuters
Robinhood tops profit expectations as trading frenzy sweeps across asset classes
July 30 (Reuters) - Robinhood Markets (HOOD.O), opens new tab exceeded second-quarter profit estimates on Wednesday, driven by a massive surge in volumes as investors traded options, crypto and stocks. The strong results add to a run of recent successes for the Menlo Park, California-based online brokerage, which has been aggressively rolling out new products to expand beyond its core user base and become a more integral part of customers' financial routines. They also underscore the resilience of retail investors, who have stayed active despite tariff-related turbulence, and highlight their key role in the current financial landscape. "When the market drops, our customers tend to lean in and buy. It feels like there's more room for retail engagement from here," Chief Financial Officer Jason Warnick said, adding that the momentum had carried into July. The company more than doubled its profit to $386 million, or 42 cents per share, for the three months ended June 30. Analysts were expecting 31 cents per share, according to data compiled by LSEG. Transaction-based revenues increased 65% to $539 million from last year. Crypto revenue jumped 98%, options soared 46% and equities climbed 65%. Shares were up marginally in choppy after-market trading. They have nearly tripled so far this year, compared with a 9% gain in the Nasdaq composite index (.IXIC), opens new tab. Robinhood is rapidly establishing itself as a major force across asset classes, evolving beyond its origins as a stock-trading app. But the expansion has faced hurdles. Last month, it launched tokens allowing users in the European Union to trade U.S.-listed stocks, alongside a limited offering providing exposure to private companies such as OpenAI and SpaceX. OpenAI pushed back, arguing that it did not endorse the tokens. Still, Robinhood CEO Vlad Tenev called tokenization "the biggest innovation our industry has seen in the past decade." Earlier this month, Robinhood was also floated as a potential candidate to be included in the S&P 500 (.SPX), opens new tab index. Such a move typically lifts the stock by triggering buying from funds that track the index. But the spot eventually went to Datadog (DDOG.O), opens new tab, a cloud security firm worth $52 billion. "It's flattering to be in the conversation," Warnick said. "It's a really strong signal that we've been on the right track. But it's not something I'm distracted by at all." Robinhood has cemented its hold in areas of consumer finance beyond trading. It launched a credit card for its Gold subscribers last year, and has since added a wealth management service with fee caps for those users. The expanded lineup has made the premium subscription more attractive, driving a 76% increase to 3.5 million users. "It's clear the retail crowd is back, and they're not just YOLOing, now they're subscribing to Gold, swiping the new credit card, and dropping deposits like it's 2021 again," said David Bartosiak, stock strategist at Zacks Investment Research.
Yahoo
5 hours ago
- Business
- Yahoo
EToro Plans to Tokenize U.S. Stocks on Ethereum in Blockchain Push
Digital trading platform eToro (ETOR) shared plans on Tuesday to tokenized U.S-listed equities on the Ethereum blockchain, joining rivals to move towards blockchain-based marketplaces. The ERC-20 tokens will represent the underlying shares held on eToro and can be redeemed back into traditional stock holdings, according to the press release. The company said the aim is to make equities tradable on-chain and compatible with decentralized finance (DeFi) applications, opening the door to around-the-clock market access. "Our goal is to tokenize every asset on eToro – starting with stocks – enabling our users to move tokenized assets onto the blockchain and from there integrate them into the broader DeFi ecosystem," CEO Yoni Assia said in a statement. "" He said that new crypto regulations like MiCA in Europe and the stablecoin-focused Genius Act in the U.S. "makes the tokenization of real-world assets a new opportunity to create digital assets that are legally backed and regulated." The move will put eToro alongside a growing roster of trading venues that recently introduced tokenized equities. Competitor Robinhood announced its stock token trading for European users last month, while several crypto exchanges including Kraken, Gemini, Bybit also debuted similar features. EToro said its tokenized stock offering build on past experiences in tokenization, acquiring Danish token startup Firmo in 2019 and launching tokenized gold and 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
Yahoo
6 hours ago
- Business
- Yahoo
Robinhood Q2 Earnings Beat Expectations as Crypto Volumes Climb and Bitstamp Deal Pays Off
Robinhood (HOOD) on Wednesday reported a 98% year-over-year jump in second-quarter crypto trading revenue, while easily beating Wall Street's earnings estimates as the company's crypto ambitions and international expansion began to take shape. The popular trading platform posted net revenue of $160 million for crypto, up from $81 million in the same period last year. Adjusted earnings per share (EPS) came in at $0.42, topping the consensus estimate of $0.31 and doubling from a year ago. Overall revenue surged 45% to $989 million, which also beat analysts' estimate of $928.8 million, according to FactSet data. The company saw $28.3 billion in crypto trading volume in the second quarter. "We delivered strong business results in Q2 driven by relentless product velocity, and we launched tokenization—which I believe is the biggest innovation our industry has seen in the past decade,' said Vlad Tenev, chairman and CEO of Robinhood. Shares of Robinhood (HOOD) have rallied 177% so far this year, the biggest jump of any U.S. tech stock. The rally has pushed its market value to $91 billion, just shy of Coinbase's (COIN) market cap. Coinbase is set to report earnings Thursday, with analysts expecting $1.59 billion in revenue and earnings of $1.25 per share. Robinhood's strong quarter reflects more than just market tailwinds. In June, the company bought crypto exchange Bitstamp for $200 million and followed up with a $179 million acquisition of WonderFi, a Canadian crypto platform. The purchases help Robinhood broaden its regulated footprint across North America. The company is also planting stakes in Europe. It recently started offering tokenized versions of stocks and ETFs, which let investors buy fractions of traditional financial assets on the blockchain. Shares of HOOD are mostly unchanged in post-market trading, while COIN shares were slightly positive. 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
Yahoo
6 hours ago
- Business
- Yahoo
Robinhood Just Reported a Blowout Quarter
Key Takeaways Robinhood Markets shares moved higher in after-hours trading on Wednesday after diluted earnings per share and revenue materially exceeded expectations. The online trading platform said its stellar results were driven by higher trading in options, crypto, and stocks. CEO Vlad Tenev called tokenization the industry's "biggest innovation" of the last Markets (HOOD) reported a blowout earnings beat The trading platform, which caters to retail investors, in its latest quarter benefitted from a return of speculative investing and meme-stock mania, with a jump in transaction-based revenue across categories. Year-over-year gains were driven by higher trading in options, crypto, as well as stocks. Robinhood's second-quarter earnings materially exceeded expectations. Its reported diluted earnings per share of $0.42, doubling year-over-year. Revenue came in at $989 million. Analysts surveyed by Visible Alpha expected $0.30 in diluted EPS and $920 million in revenue. Robinhood CFO Jason Warnick said on a conference call that the trading platform had a strong start to the third quarter, with July equity and options trading volumes setting monthly records. Crypto volumes at both Robinhood and its European crypto exchange Bitstamp are at six-month highs, he stock was relatively quiet in after-hours trading, recently rising about 1% after climbing a bit less than 3% in the regular session. The stock has been on an upward tear this year as it leaned into its crypto business and rolled out new products including blockchain-based stock tokens in Europe and staking for ethereum (ETHUSD) and solana (SOLUSD); the shares are up almost 170% year-to-date. CEO Vlad Tenev in a statement said Robinhood's "relentless product velocity" drove its strong second-quarter results and said tokenization was "the biggest innovation" the industry has seen in years. The company stands to benefit from relaxed day-trading rules if the Financial Industry Regulatory Authority heeds the brokerage's comments that guidelines were more harmful than helpful to investors, and a troublesome source of customer complaints. Robinhood raised its full-year outlook for adjusted operating expenses slightly to account for its acquisition of Bitstamp, which closed in the second quarter. This article has been updated since it was first published to add new information and update share-price movement. Read the original article on Investopedia 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
Business Times
6 hours ago
- Business
- Business Times
Robinhood tops profit expectations as trading frenzy sweeps across asset classes
[BENGALURU] Robinhood Markets exceeded second-quarter profit estimates on Wednesday (Jul 30), driven by a massive surge in volumes as investors traded options, crypto and stocks. The strong results add to a run of recent successes for the Menlo Park, California-based online brokerage, which has been aggressively rolling out new products to expand beyond its core user base and become a more integral part of customers' financial routines. They also underscore the resilience of retail investors, who have stayed active despite tariff-related turbulence, and highlight their key role in the current financial landscape. 'When the market drops, our customers tend to lean in and buy. It feels like there's more room for retail engagement from here,' chief financial officer Jason Warnick said, adding that the momentum had carried into July. The company more than doubled its profit to US$386 million, or 42 US cents per share, for the three months ended Jun 30. Analysts were expecting 31 US cents per share, according to data compiled by LSEG. Transaction-based revenues increased 65 per cent to US$539 million from last year. Crypto revenue jumped 98 per cent, options soared 46 per cent and equities climbed 65 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Shares rose 1.6 per cent after market close. They have nearly tripled so far this year, compared with a 9 per cent gain in the Nasdaq composite index. Expansion drive Robinhood is rapidly establishing itself as a major force across asset classes, evolving beyond its origins as a stock-trading app. But the expansion has faced hurdles. Last month, it launched tokens allowing users in the European Union to trade US-listed stocks, alongside a limited offering providing exposure to private companies such as OpenAI and SpaceX. OpenAI pushed back, arguing that it did not endorse the tokens. Still, Robinhood CEO Vlad Tenev called tokenisation 'the biggest innovation our industry has seen in the past decade'. Earlier this month, Robinhood was also floated as a potential candidate to be included in the S&P 500 index. Such a move typically lifts the stock by triggering buying from funds that track the index. But the spot eventually went to Datadog, a cloud security firm worth US$52 billion. 'It's flattering to be in the conversation,' Warnick said. 'It's a really strong signal that we have been on the right track. But it's not something I'm distracted by at all.' Robinhood has cemented its hold in areas of consumer finance beyond trading. It launched a credit card for its Gold subscribers last year, and has since added a wealth management service with fee caps for those users. The expanded lineup has made the premium subscription more attractive, driving a 76 per cent increase to 3.5 million users. REUTERS
