Robinhood shares gain 21% in August as earnings and trading activity surge
Robinhood’s second-quarter revenue and profit beat average analyst estimates, while cryptocurrency and prediction-market activity helped lift its shares.
Robinhood Markets shares ended August 21% higher after a strong second-quarter earnings report and heightened activity across cryptocurrency and prediction markets, according to an account published by The Motley Fool and carried by Yahoo Finance.
Revenue for the quarter rose 32% year on year to more than US$1.3 billion, while net profit increased 45% to US$561 million. The results were reported to be above average analyst estimates, setting a positive tone for the stock as August began.
Cryptocurrency transaction-based revenue was a weaker point, falling 38% to US$100 million. A rally in cryptocurrencies from mid-August nevertheless supported the shares, with the source citing proposed US policy measures, including the CLARITY Act and Treasury bond repurchases, among factors behind the market rebound.
Prediction-market activity also contributed to the company’s momentum. Robinhood offers the products in collaboration with Kalshi, and revenue from prediction markets exceeded crypto-trading fees in the second quarter, according to the report.
Robinhood provides equities, cryptocurrency and prediction-market trading. The mix has broadened the company’s sources of activity, although cryptocurrency and prediction-market volumes remain exposed to changing market interest and may prove volatile.
