In today’s episode of Asking for Direction, the host Josh Lipton Breaks down some of the biggest themes and takeaways from the trading day.
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, explains that Robinhood had a “breakout 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. “From the beginning, Robinhood has provided, I think, 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 expand, both from a customer perspective and also from a product perspective.” “I think you’re seeing that play out in the types of deposits coming in. That’s driving a lot of momentum.”
Yahoo Finance Reporter Josh Schaefer Breaking down the key takeaways from the trading day as markets (^DJI,^GSPC, ^IXIC) struggled to sustain their recovery after 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 pose a challenge, consumers are spending just 30% of their monthly food budgets at restaurants as of April 2024, according to data from a think tank. Pop List StudyPablo Rivero, CEO of Resy, comments on what continues to drive booking numbers, explaining: “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 at the table, and they also want to have a unique experience.”
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.
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