Robinhood stock cools after jump tied to Q1 revenue beat

Yahoo Finance Live discusses a slight drop in shares of Robinhood after the company's Q1 earnings report showed a decline in transaction-based crypto revenues.

Video transcript

JULIE HYMAN: Let's take a look at Robinhood. Those shoes are little changed before the opening bell, but we have seen them rise as of late. Cooling down today only from the pop the stock got from its first-quarter earnings report, which showed a jump in interest income due to Federal Reserve rate hikes.

Revenue for the quarter coming in well above estimates at $441 million versus $423 million estimated, which is a 16% jump since last quarter. Adjusted loss per share coming in $0.01 worse than expected, and Robinhood saw a decline in transaction-based crypto revenues falling 1%, while equities revenue increased 29%. Robinhood monthly active users slipping to 11.4 million.

But the big news here, the online brokerage announcing a 24-hour trading platform five days a week. That is set to launch to some users next week and then will roll out more broadly here.

We've got a lot of questions for Robinhood CEO Vlad Tenev at 10:00 AM Eastern, including about that new offering of expanded hours of trading, including the increasingly diversified lines of revenue for Robinhood that led to that bounce in the first quarter, and including where Robinhood is going from here, both in terms of its profits and in terms of regulation. You don't want to miss that conversation.