Robinhood Shares Slide 8% After November Trading Volumes Drop Sharply
In November, Robinhood experienced a significant decline in trading volumes across equities, options, and crypto. Total platform assets fell 5% month-over-month to $325 billion. Crypto trading volume dropped 12% from October to $28.6 billion and was down 19% year-over-year. Bitstamp, the crypto exchange Robinhood agreed to acquire earlier this year, saw its volumes decline by 11% in November. Equity trading volumes decreased 37% month-over-month to $201.5 billion but showed a 37% increase year-over-year. Robinhood's shares fell 8% on Thursday, despite being up 216% year-to-date. The slowdown in trading activity raises concerns that retail investor engagement may be waning as the year-end approaches. This slump in volumes across various asset classes could negatively impact Robinhood's earnings potential due to its transaction-based revenue model.
