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Robinhood (HOOD) shares fell about 8% in after-hours buying and selling Tuesday after the zero-commission buying and selling platform missed badly on income expectations as its cryptocurrency income fell sharply from the second quarter’s document excessive.Robinhood mentioned its crypto revenues fell to only $51 million within the third quarter, down from a document $233 million within the second quarter. The corporate mentioned the lowered crypto buying and selling exercise led to considerably fewer new funded accounts and decrease income within the quarter as in comparison with the second quarter.Complete income for the quarter was $365 million, wanting analyst estimates of $437.1 million, based on FactSet. The corporate reported an adjusted internet lack of $2.06 per share, versus analyst expectations of a lack of $0.67.Robinhood mentioned that over a million prospects have signed up on the ready listing for its crypto pockets, which is one in all its “most closely requested merchandise.”The corporate additionally launched recurring crypto investments, permitting prospects to routinely purchase crypto, with out paying commissions and on their very own schedule.On the corporate’s earnings name on Tuesday, CEO Vlad Tenev mentioned the corporate was awaiting regulatory readability earlier than including extra cryptocurrencies to the seven that prospects can presently commerce – bitcoin, bitcoin money, bitcoin SV, dogecoin, ethereum, ethereum traditional and litecoin. “We’re going to be very cautious,” Tenev mentioned.Earlier hypothesis existed round Shiba Inu being added to Robinhood’s crypto choices, although Tenev made no point out of this on the decision.The corporate additionally famous that the recognition of dogecoin contributed to thousands and thousands of recent accounts being added within the second quarter.Robinhood went public on July 28 at an IPO worth of $38 per share and closed down 8% on its first day of buying and selling.UPDATE (Oct. 26, 20:57 UTC): Updates share worth and convention name commentary.UPDATE (Oct. 26, 22:33 UTC): Provides feedback from the earnings name.
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