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Robinhood Hits Its Revenue Mark and Finds Crypto Has Other Plans
· New York time
Robinhood's third-quarter revenue met expectations as the company expanded into options, prediction markets and other financial services. Its shares nevertheless fell as a slump in crypto weighed on profits and offset gains from newer businesses. The quarter offered the trading platform an awkward achievement: it could point to growth beyond its familiar products while also showing that one weak market still mattered. A wider menu gives customers more things to do, but it does not guarantee that every aisle will be busy at once. Options and prediction markets helped fuel revenue, according to the reporting, while the crypto downturn weighed on the bottom line. That leaves investors assessing both the breadth of the business and the sensitivity of its results to activity in particular markets. Meeting a revenue expectation is one part of that assessment, not an automatic celebration for shareholders. For a company associated with making financial markets accessible, the reaction was an especially blunt lesson in market mood. The revenue number arrived on schedule, the newer services contributed, and the shares still fell. The platform has built more ways for customers to participate, but it has not found a setting that makes all its businesses thrive in the same quarter. Perhaps that feature will appear in a future update, immediately below the button marked diversify.
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