Robinhood slips 10% after warning that a crypto-driven revenue bump could soon fade

Robinhood slips 10% after warning that a crypto-driven revenue bump could soon fade

Shares of slipped as much as 10% on Thursday after the popular trading platform said in its earnings report that a boom in trading - driven heavily by cryptocurrencies - that doubled its revenues for the second quarter could fade in the coming months. The stock pared early losses, and was trading lower by 7.31%, $46.16 as of 9:50 a.m. ET. The slowdown, the company warned, will come as the economy opens up, causing people to spend less time at home. The company total net revenues that increased 131% to $565 million, compared with $244 million in the second quarter of 2020. The higher-than-expected revenue was boosted by new customers who invested in digital assets, such as bitcoin, ethereum, and dogecoin as the tokens soared to all-time highs earlier this year. "Many of these factors worked in our favor," the company said in a statement. But for the next three months, Robinhood said it expects "seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer funded accounts than in the prior quarter." Cryptocurrency trading revenue in the quarter increased 4,560% to $233 million in the second quarter, compared to $5 million in the