Shares of Robinhood Markets Inc, the brokerage house that was at the center of last year’s individual trading frenzy and lists meme coin projects such as Shiba Inu (SHIB) and Dogecoin (DOGE), saw a 43% drop in first-quarter revenue and monthly active users. It fell to a record low on Thursday after falling.
Robinhood revenues plunged heavily
Shares of the Menlo Park, California-based company fell more than 12% to $8.83 in long-term trading after the results. The shares, which have lost more than 43% of their market value so far this year, were sold for $38 at its IPO last July. Also, total net revenues fell to $299 million, up from $522 million a year earlier. Vlad Tenev, Chief Executive Officer of Robinhood, said:
For most of our history, Robinhood has operated in times of low interest rates, low inflation and emerging markets. Our customers are currently experiencing all three of these trends going in the opposite direction, perhaps for the first time in their lives.
Trade volumes have dwindled from last year’s frenetic pace as individual investors used the platform to pump money into so-called meme stocks, including GameStop and AMC Entertainment. Robinhood said on Tuesday it is laying off about 9% of its full-time employees, and the rapid headcount growth has led to some recurring roles and job functions.
High-growth tech stocks have come under pressure this year as weak stock performance and falling analyst confidence weighed on investor sentiment. Partnering with other fast-growing tech firms, Robinhood has yet to make a profit since its launch.
Can SHIB and DOGE on the platform’s list help?
As we mentioned in the news of Kriptokoin.com, Robinhood announced that the meme coin Dogecoin alone provided 34% of its revenues from crypto money last year. The company then stated that if there is a slowdown in demand and an alternative cryptocurrency cannot be found, financial conditions and operations will be adversely affected.
Related to this quest, Robinhood has listed Shiba Inu (SHIB), another popular dog-themed meme coin like DOGE, last month, following the call of many users for SHIB listing. Let’s see if SHIB can save Robinhood.
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