(Reuters) -Robinhood Markets missed Wall Street estimates for third-quarter revenue on Tuesday, weighed by a slowdown in trading activity, sending shares of the online brokerage down 6.4% in extended trading.
Robinhood (NASDAQ:) was at the center of the 2021 retail trading frenzy, driven by mom-and-pop investors who used the company’s commission-free platform to pump money into so-called “meme stocks” during the pandemic-led lockdowns.
The boost has since faded as Americans grappling with a cost-of-living crisis, high interest rates and inflation put trading on the back foot.
Robinhood’s transaction-based revenue decreased 11% year-over-year to $185 million.
The company’s net revenue rose to $467 million in the three months ended Sept. 30, compared with $361 million a year earlier.
Analysts on average had expected $478.4 million, according to LSEG data.