Robinhood Posts $423m Net Losses, Share Plunge Follow

Daniel Attoe
Daniel Attoe

Updated · Feb 02, 2022

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Commission-free investment app Robinhood posted a 4th quarter net loss of $423 million. Following the results, its shares fell by up to 15% in postmarket trading.

Latest Quarter Loss

Robinhood, a commission-free brokerage, posted a $423 million or $0.49 per share net loss for the fourth quarter of 2021. The results came despite reported revenues of $363 million for the same period. For the entire year, its net loss added up to a whopping $3.69 billion.

After the brokerage posted the results, its shares sank as much as 15% to $9.98 in postmarket trading. Before it went public in July last year, Robinhood’s share price stood at $38. It has not yet reported a profit since that IPO.

After launching in 2015, Robinhood disrupted the retail investment complex previously controlled by established players like Charles Schwab and TD Ameritrade. It enjoyed popularity among young and new traders, offering a platform to invest in stocks and ETFs and buy cryptocurrency

Despite the losses, Robinhood will push its cryptocurrency platform to the global stage.

“Robinhood has set aggressive goals to start opening its crypto platform up to customers internationally in 2022,” it said in a statement. “The company believes in the immense potential of the crypto economy and sees a big opportunity in serving customers across the globe.”

According to Chief Financial Officer, Jason Warnick, rising costs have contributed to slowing down net income. But the company is optimistic.

“We think we’re in a really good position to start slowing that from here,” he said in a call to reporters.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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