Summary : The logo of Robinhood Markets Inc is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021.
The Menlo Park, California-based company saw revenue fall 44% in the second quarter ended June 30 as trading volumes eased from last year’s frenetic pace when retail investors used its application to pump money into so-called ‘meme stocks’.
“We believe these cost reductions will likely drive the company to profitability in the near term and could drive shares higher,” Goldman Sachs analysts wrote in a note.
In April, Robinhood had slashed 9% of its total workforce, citing the need to manage expenses.
Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli
The logo of Robinhood Markets Inc is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly/File PhotoAug 3 (Reuters) – Shares of Robinhood Markets (HOOD.O) rose 15% on Wednesday, a day after the commission-free brokerage announced job cuts to weather the downturn in the cryptocurrency markets and posted a smaller-than-expected quarterly loss.The Menlo Park, California-based company saw revenue fall 44% in the second quarter ended June 30 as trading volumes eased from last year’s frenetic pace when retail investors used its application to pump money into so-called ‘meme stocks’. read moreThe brokerage said it will slash its total headcount by 23% in the backdrop of a looming recession, rising rates and decades-high inflation.”We believe these cost reductions will likely drive the company to profitability in the near term and could drive shares higher,” Goldman Sachs analysts wrote in a note.
