Summary
- Robinhood shares closed at $89.91, down 9.62%, marking the biggest decline in the S&P 500.
- It said a sharp sell-off in cryptocurrencies, including bitcoin’s roughly 10% drop, was behind Robinhood’s slide.
- It noted that revenue from Robinhood’s cryptocurrency trading segment jumped 200% year on year to about $268 million per quarter, accounting for 40% of total revenue.
Forecast Trend Report by Period
Robinhood shares slumped as prices of virtual assets (cryptocurrencies) fell.
On the 2nd (local time), Robinhood closed at $89.91 on the Nasdaq, down 9.62% from the previous session. It marked the biggest decline among S&P 500 constituents on the day. Analysts say the selling was driven by a sharp weekend sell-off in cryptocurrencies including bitcoin. Investment outlet Seeking Alpha said, “Bitcoin, the largest token by market capitalization, hit $75,700 on the 1st, down about 10% from the previous day.”
Robinhood operates crypto trading services alongside its stock trading platform, and its share price has tended to move in tandem with cryptocurrency prices. Last year, revenue from Robinhood’s cryptocurrency trading segment surged 200% year on year to about $268 million per quarter, accounting for 40% of the company’s total revenue.
Robinhood’s longer-term share-price trajectory is expected to become clearer with its fourth-quarter and full-year earnings release for last year, due on the 10th. On Wall Street, Robinhood is estimated to have posted revenue of $1.34 billion last year, up 32% from the prior year.
Reporter Kim Dong-hyun 3code@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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