This broker reported Q3 revenue of $1.42 billion, right on the mark
EPS came in at $0.51, versus consensus of $0.56
Net income also fell year over year
Crypto trading revenue was cut in half, down 55% year over year to just $120 million
Options revenue, on the other hand, rose 31% to about $399 million
Event contracts surged more than fivefold
Equity trading revenue also climbed 40%
But the market only saw the crypto hit
Shares plunged about 8.4% at one point before the open
The Plaza token $HOODB wobbled too
The company is still pitching its diversification story
Net inflows totaled $15.7 billion for the quarter, an annualized rate of about 17%
Net inflows over the past year totaled about $71 billion
The problem is, what everyone still values in this arena is the upside from crypto trading
Crypto is cooling off
Even the strongest event-contract growth can't make up for earnings below expectations
Overall transaction-based revenue also came in slightly below Wall Street expectations
The business mix is changing
But the valuation anchor hasn't fully shifted
My take
This isn't just about one brokerage
It's retail crypto activity cooling down, showing up in brokerage earnings
Anyone still chasing brokerage stocks for crypto exposure
needs to accept this first: when spot crypto cools
Event contracts and options can provide a floor, but they can't support the valuation
The retail investor sentiment gauge is pointing to a cooldown this time
The buzz is in prediction markets
The profit gap is in crypto spot trading
The earnings report makes the temperature shift crystal clear
Don't just look at the business innovation headlines
Don't just look at the business innovation headlines
The retail sentiment gauge has cooled, and valuation upside will shrink along with it
$HOODB $BTC
#Robinhood stock falls 8.4% after earnings report #BTC #StockEarningsSeason
EPS came in at $0.51, versus consensus of $0.56
Net income also fell year over year
Crypto trading revenue was cut in half, down 55% year over year to just $120 million
Options revenue, on the other hand, rose 31% to about $399 million
Event contracts surged more than fivefold
Equity trading revenue also climbed 40%
But the market only saw the crypto hit
Shares plunged about 8.4% at one point before the open
The Plaza token $HOODB wobbled too
The company is still pitching its diversification story
Net inflows totaled $15.7 billion for the quarter, an annualized rate of about 17%
Net inflows over the past year totaled about $71 billion
The problem is, what everyone still values in this arena is the upside from crypto trading
Crypto is cooling off
Even the strongest event-contract growth can't make up for earnings below expectations
Overall transaction-based revenue also came in slightly below Wall Street expectations
The business mix is changing
But the valuation anchor hasn't fully shifted
My take
This isn't just about one brokerage
It's retail crypto activity cooling down, showing up in brokerage earnings
Anyone still chasing brokerage stocks for crypto exposure
needs to accept this first: when spot crypto cools
Event contracts and options can provide a floor, but they can't support the valuation
The retail investor sentiment gauge is pointing to a cooldown this time
The buzz is in prediction markets
The profit gap is in crypto spot trading
The earnings report makes the temperature shift crystal clear
Don't just look at the business innovation headlines
Don't just look at the business innovation headlines
The retail sentiment gauge has cooled, and valuation upside will shrink along with it
$HOODB $BTC
#Robinhood stock falls 8.4% after earnings report #BTC #StockEarningsSeason
