Shares of Robinhood Markets Inc. plunged on Thursday extended trading after it posted a $423.00 million net loss in the fourth quarter.
The commission-free brokerage firm sank 12.75% or 1.48 points to $10.13 per share, far from its August record high of $85.00.
It also trailed its loss of 6.45% or 0.80 points to $11.61 in the regular market session.
Subsequently, its stock price has traded 37.04% or 6.83 points lower since the start of the year.
The company currently has a market capitalization of $9.98 billion with outstanding shares of 859,705,907.
Accordingly, Robinhood posted a $0.49 loss per diluted share in the last quarter, higher than the market estimate of $0.45 loss.
Nevertheless, the California-based firm posted $363.00 million in total net revenue, slightly above the expected $362.10 million.
The figure also edged up 14.00% compared to the $318.00 million in the same period of 2020.
Subsequently, transaction-based revenues increased 12.00% to $264.00 million.
Then, options revenue strengthened 14.00% to $163.00 million as cryptocurrencies revenue boosted 304.00% to $48.00 million.
Conversely, its equities reported a decline of 35.00% to $52.00 million.
Robinhood Continues to Invest in Crypto
Robinhood still invests heavily in cryptocurrencies despite the slower quarterly growth.
The banner $233.00 million in Q2 crypto-based revenue skidded to $51.00 million in the third quarter.
Consequently, the latest earnings report reflected a continuous drop.
Still, the business announced its plans to open its crypto platform up to customers internationally this year.
Robinhood said that it believed in the immense potential of the crypto economy.
Meanwhile, analysts noted that the firm’s share price could trigger a downturn due to worries about a potential crackdown in the industry.
The company said that it does not expect the regulators to ban the practice in line with this.
Regardless, it expressed confidence in looking for other ways to generate revenue.
Robinhood also cited plans to create products intended to support long-term investing, spending, and savings.