Robinhood Stock Prices Experienced a Drop on Thursday, August 19
After a short run of Robinhood’s stock prices experiencing a surge, their prices have started experiencing a downtrend. This means that the meme stock short run for Robinhood has ended in a very small amount of time. Now, the stock prices for Robinhood have to experience the same trend as any other stock trading on Wall Street.
The data from Wall Street shows that the share prices for Robinhood have experienced a 10% drop on Thursday, August 19, 2021. As a result of the 10% price drop, Robinhood’s share price is now hovering around $44.69 per share.
The reason behind the downfall in Robinhood’s share prices is because of the earnings report it shared since it went public. It was the end of July 2021, when Robinhood went public and launched its initial public offering (IPO).
So far, the highest share price Robinhood observed was on August 4, 2021, where its share price went all the way up to $85 per share. Since the all-time high Robinhood experienced in terms of its stock prices, they have experienced a 47% plummet.
Just recently, Robinhood had shared the earnings report for the second quarter of 2021. The company revealed that its revenue in the second quarter of 2021 was $565 million, which had doubled as compared to the first quarter of 2021.
According to Robinhood, the majority of the revenue is generated in the second quarter of 2021 was due to the meme coin, Dogecoin (DOGE). However, as the name suggests, DOGE is a meme coin, which started off as a joke and a source of entertainment.
Although Robinhood continued with its trading, DOGE went all the way up before its prices came crashing down. This means that the third quarter of 2021 is not going to be as promising as the second quarter was.
The firm revealed that just for the cryptocurrency trading, its revenue grew all the way up to $233 million, which is 45-times more than it achieved in Q2 of 2020.
In the first quarter of 2021, Robinhood had observed 17% transaction-related revenue. However, in the second quarter of 2021, the transaction-related revenue increased and went all the way up to 52%. Surprisingly, in the fourth quarter of 2020, the transaction-related revenue the stock trading platform had observed was just 4%.
Robinhood also revealed that in the second quarter of 2021, more than 60% of active accounts that had funds in their accounts, traded win cryptocurrencies.
Although Bitcoin and Ethereum have both been adopted by Robinhood for trades, Dogecoin was the only cryptocurrency that outperformed the rest. Robinhood reported that in the second quarter, 62% of the crypto-revenue came in from trades in DOGE.