Oct 27 (Reuters) – Robinhood Markets reported a drop in third-quarter profit on Tuesday as slower cryptocurrency trading weighed on growth, despite robust trading activity across other asset classes, sending its shares down 3.4% after the bell.
Crypto markets have come under pressure this year amid heightened volatility and persistent outflows, as inflationary pressures and higher interest rates make bonds and other traditional investments more attractive than speculative assets.
Meanwhile, tensions in the Middle East tensions rattled global markets during the quarter, spurring trading activity on brokerage platforms as investors adjusted portfolios and hedged against risks.
Robinhood’s transaction-based revenue rose about 19% to $867 million, driven by strength in equities, options and prediction markets.
The Menlo Park, California-based company posted a profit of $476 million, or 51 cents per share, for the three months ended September 30, compared with $556 million, or 61 cents per share, in the year-ago period.
(Reporting by Prakhar Srivastava and Rishab Shaju in Bengaluru; Editing by Diti Pujara)
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