HISTORY – The new broker was one of the stars of the pandemic. Its rate has melted by 70% and it is laying off 10% of its workforce.
Robinhood’s fall is as precipitous as its rise was meteoric. The American platform that makes stock trading accessible to individuals released its troubling quarterly results on Thursday. Number of users, revenue, profit… all indicators are in the red. The results are even worse than analysts expected. In the first quarter, its revenue fell to $300 million (-43% year-over-year) and its average number of users fell to 15.9 million (-10%). As a direct result of the difficulties, Robinhood announced on Wednesday that it had to lay off 9% of its workforce, or more than 300 people.
It is the fifth consecutive quarter of decline for the company, which had benefited greatly from the pandemic. In 2020 and 2021, hundreds of millions of people found themselves locked up. To escape boredom and make some money, some have turned to trading apps like Robinhood…