Why Robinhood Stock Jumped in August
Shares of Robinhood Markets (NASDAQ: HOOD) gained 26.1% last month, according to data provided by S&P Global Market Intelligence. Investors have high growth expectations for this IPO stock, and Robinhood's second-quarter earnings results didn't disappoint.
Robinhood ended the quarter with 21.3 million monthly active users, and the numbers are clear that these customers are very enthused to participate in the financial markets. Revenue more than doubled year over year to $565 million. The growth was driven mostly by trading in options and cryptocurrencies, which comprise 88% of transaction-based revenues in the quarter.
For now, the company gets a pass for reporting a net loss of $502 million. Robinhood clearly has a long runway of growth by winning over more first-time investors to its platform, and it continues to invest in customer support and educational features to further that objective.
Source Fool.com
