Robinhood Earnings, Consumer Spending: Trend Demand

In today’s episode of “A Question About Direction”, he hosts Josh Lipton This article covers some of the biggest topics and lessons learned from day trading.

Robinhood (HOOD) beat second-quarter earnings expectations, posting revenue of $682 million and earnings of $0.21 per share. However, the trading platform fell short of Wall Street’s estimates for user growth. Devin Ryan, director of fintech research at Citizens JMP, says Robinhood had a “fantastic quarter” as it saw revenue grow 40% year over year. He notes that the company has been very profitable and saw net new deposits — which he sees as a key driver — rise 40% more than they did in 2023. “Robinhood has, I think, from the beginning provided a really intuitive and seamless trading experience for new investors in the market. And they’ve been very successful at that. But I think the vision from the beginning has always been to scale, both from a customer perspective and then also from a product perspective,” Ryan says. “I think you’re seeing that play out in the types of deposits coming in. So that’s driving a lot of momentum.”

Yahoo Finance Correspondent Josh Shaffer Analyzes the key takeaways from the trading day as markets (^DJI,^GSPC, ^IXIC) struggled to sustain their recovery after being hammered by a 3-day selloff earlier in the week. Artificial intelligence trading, in particular, is under pressure as Wall Street looks for real results from AI investments. Shares of chip giant Super Micro Computer (SMCI) fell nearly 20% after it missed earnings expectations. Amid this period of extreme volatility, all eyes are on Thursday’s jobless claims report as it could provide the economic data needed to spur a market recovery.

With inflation continuing to be a challenge, consumers are spending just 30% of their monthly food budgets on restaurants as of April 2024, according to data from Study the pop-up menu“Consumers are looking for an opportunity to connect, right? At the end of the day, that’s why they go to restaurants. They want to connect across the table, and they want to have a unique experience,” said Pablo Rivero, CEO of Resi, commenting on what continues to drive reservation numbers.

Finally, Josh Lipton analyzes some of the biggest names moving in after-hours trading, from Bumble (BMBL) to Zillow (Z).

This article was written by Melanie Riehl.