Robinhood Shares Fall Amid Crypto Revenue Decline

Robinhood shares saw a sharp decline in after-hours trading following its quarterly report. Despite beating Wall Street expectations for profit, the company's revenue from cryptocurrency transactions fell by 38% year-over-year to $100 million.

The drop in crypto revenue was partially offset by growth in options and prediction markets, but it appears to have spooked investors. Robinhood shares with the ticker HOOD dropped around 4% in after-hours trading, adding to a 3.1% decline during the main session on Wednesday.

In his statement, Vlad Tenev, chairman of the board and CEO of Robinhood, emphasized the company's goal of making more people asset owners through rapid product launches. This includes initiatives like Robinhood Chain, a blockchain network for tokenized US stocks, and Robinhood Ventures.