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Robinhood's crypto trading paved way for robust Q4

Robinhood (HOOD) soars higher after beating Wall Street expectations on the top and bottom lines in its fourth-quarter earnings, posting $471 million in revenue versus an expected $457 million, and adjusted earnings per share of $0.03 versus an expected loss of $0.01. While the trading platform's monthly active users fell 4% for the quarter, other metrics like crypto trading rose 10% year-over-year, which brought in $43 million in revenue for the company. Needham & Company Senior Research Analyst John Tadaro joins Yahoo Finance to discuss Robinhood's performance and the influx of crypto trading that boosted revenue. Tadaro puts crypto trading in perspective for the company: "2024, most of the growth we see, we do have coming from crypto. Crypto came in very strong in December and primarily made that beat in Q4 there. So, if it weren't for crypto, the transactional activity wouldn't have beat. So, we do see that as a growing segment. It's coming off a very low baseline, so crypto volumes obviously plummeted a lot last year, so you're seeing kind of a snapback that's really propelling the growth. For equities options, that growth is a little bit more moderated, it's a more mature business for Robinhood, so we do see crypto as kind of the growth component for Robinhood. That being said, what we would like to see is Robinhood come out and offer more crypto products." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino


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