Robinhood, an online broker, continues losing popularity. At the end of January, the company's shares plunged by 6.45% but then extended the gap to 14.3%, according to NASDAQ data.
Online stock brokerage Robinhood’s success was hard to believe from the beginning. Even its listing on the NASDAQ stock exchange was controversial and ended up as a real failure. Notably, Robinhood priced its IPO at $38 a share, the low end of its offering range. As a result, the company raised around $2 billion, valuing itself at around $32 billion. Thereafter, the performance only got worse. The latest drop in value came after the company had reported a net loss of $423 million in the fourth quarter that was worse than analysts estimated.
Total net revenues stood at $363 million, compared with $318 million in 2020. Robinhood's costs increased by 162% from the previous year, contributing to the company's net loss.
Robinhood Chief Financial Officer said it was possible the company would become profitable in 2022 but indicated 2023 was a more likely target depending on overall market conditions and the launch of new products.
