“Robinhood Markets experiences a surge in premarket trading on Thursday following the announcement of record first-quarter revenue and profit. The boost is attributed to the return of individual investors to its commission-free platform, particularly for trading cryptocurrencies.”
“Retail trading has seen a resurgence, fueled by the rise of bitcoin and record highs in U.S. stocks earlier this year. This trend has been supported by optimism regarding a soft landing for the economy and anticipation of interest rate cuts by the Federal Reserve.”
“The approval of the first spot bitcoin ETFs in the U.S. in January provided a significant boost to the cryptocurrency industry, restoring investor confidence that had been shaken by several high-profile collapses in recent years. This regulatory milestone signaled a maturing of the crypto market and underscored growing acceptance of digital assets within traditional financial frameworks, further contributing to the resurgence of interest in retail trading.”
“Robinhood exceeded Wall Street’s expectations on Wednesday with a remarkable 40% surge in revenue and a profit of 18 cents per share. This impressive performance stands in stark contrast to the loss of 57 cents per share reported a year ago, highlighting the company’s significant turnaround and robust growth trajectory.”
Its cryptocurrency revenue more than tripled to $126 million, while equities revenue soared 44 per cent.
Robinhood was at the center of the 2021 retail trading frenzy, when people used the platform to pump money into so-called “meme stocks” during lockdowns. Its fortunes later turned as household budgets came under pressure from decades-high inflation and rising borrowing costs.
