Robinhood transaction revenue expected to top GameStop-era frenzy
The Financial Times reports that results from Robinhood due tomorrow afternoon may mark a milestone in the coming of age of the free-trading app.
They write:
“For the quarter it is about to report, analysts expect $535 million in transaction-related revenues, according to LSEG data — a number that would finally surpass the meme-mania peak. But this time revenues would be driven not by stocks — or even options trading, typically the largest source of income — but a surge in crypto trading income to $320 million from $61 million in the previous three months, after Donald Trump’s election as US president in November raised hopes for a crypto-friendly administration.”
(Full disclosure: Sherwood Media is an editorially independent subsidiary of Robinhood. I own Robinhood stock as part of my compensation.)
An open question, of course, is how much of the recent boom in retail trading has already been priced into the shares by traders and analysts.
The stock is up roughly 45% this year and 370% over the last year. Investors will determine whether to keep that momentum going or not — Wall Street expects EPS of $0.41 on revenue of $935 million, according to FactSet — when results land after the closing bell tomorrow.
“For the quarter it is about to report, analysts expect $535 million in transaction-related revenues, according to LSEG data — a number that would finally surpass the meme-mania peak. But this time revenues would be driven not by stocks — or even options trading, typically the largest source of income — but a surge in crypto trading income to $320 million from $61 million in the previous three months, after Donald Trump’s election as US president in November raised hopes for a crypto-friendly administration.”
(Full disclosure: Sherwood Media is an editorially independent subsidiary of Robinhood. I own Robinhood stock as part of my compensation.)
An open question, of course, is how much of the recent boom in retail trading has already been priced into the shares by traders and analysts.
The stock is up roughly 45% this year and 370% over the last year. Investors will determine whether to keep that momentum going or not — Wall Street expects EPS of $0.41 on revenue of $935 million, according to FactSet — when results land after the closing bell tomorrow.
