Robinhood Stock Climbs 5% amid 24-Hour Trading Push

Highlights

• Robinhood is preparing to launch 24-hour trading in equities and ETFs.
• The online broker is also readying an expansion into futures trading.
• HOOD stock was up 5% in after-hours trading.

Online broker Robinhood has reported its Q1 results, and HOOD stock is rising in after-hours trading. Shares climbed approximately 5% to $9.51 as investors celebrated the brokerage’s plans for an aggressive expansion push this year. Robinhood’s stock is up nearly 10% so far in 2023. 

Robinhood plans to introduce around-the-clock trading in stocks and ETFs five days a week, according to a report in The Wall Street Journal. Robinhood will roll out the feature in several dozen stocks, including Tesla, Amazon and Apple, to start.

The brokerage will begin introducing its new service to select traders first while all customers should have access starting in June. In addition, Robinhood plans to introduce futures trading by the end of this year amid a highly competitive brokerage industry.

Robinhood’s Quarterly Results

Robinhood’s total net revenues increased by 16% vs. the prior quarter to $441 million while transaction-based revenue grew 11% to $207 million. Net revenues grew by an eye-popping 47% vs. the year-ago period, fueled by the rising interest rate environment. 

Within transaction revenue, asset classes were mixed, with options and equities experiencing gains of 7% and 29% while cryptocurrencies fell 1% to $38 million. Cryptocurrencies have been stuck in the doldrums amid a regulatory crackdown in the U.S. market that has cast a shadow on innovation. 

Meanwhile, Robinhood saw a 25% jump in its net interest revenue to $208 million, fueled by interest earning assets, securities lending and rising short-term interest rates. 

Robinhood’s quarterly net loss widened to $511 million, or -$0.57 per share vs. $166 million, or -$0.19 per share in the prior quarter. The company’s loss was not as steep as expected, with a consensus estimate of ($0.61) per share.