Robinhood Shares Gain Ahead of 24-Hour Trading Launch

The online brokerage reported better-than-expected earnings and said it will launch a 24-hour market

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published May 11, 2023
Robinhood

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Robinhood Markets (HOOD) shares are advancing as the online retail brokerage reported better-than-expected financial results, and said it's expanding services including enabling 24-hour trading.

The online brokerage posted a first quarter loss of $0.57 per share, with revenue soaring 47% to $441 million. Both were above analysts’ forecasts.

The company benefited from the Federal Reserve's interest rate hikes, with net interest revenue jumping 278% from a year ago. However, transaction-based revenues declined 5%.

Robinhood added 400,000 monthly active users (MAU) from the previous quarter for a total of 11.8 million, and average revenue per user increased 17% to $77.

24-Hour Trading

The company also said it will launch "24 Hour Market" next week, giving customers the opportunity to trade stocks 24 hours a day, five days a week.

Robinhood Markets shares are up over 4% as of 2:00 p.m. New York time, and 16% year-to-date. They've far outperformed the broader S&P 500 financial sector, which is down 7% over the same period.

Robinhood (HOOD) Shares YTD

YCharts
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  1. Robinhood. "Robinhood Reports First Quarter 2023 Results."

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