Robinhood says customers deposited a record $6.5 billion in April as active traders try to profit off market chaos
From Yahoo Finance: 2025-05-01 13:52:00
Customers continued to flock to Robinhood during market volatility caused by Trump’s tariff rollout. The online trading platform’s confident outlook and outreach to active traders helped it thrive in April. Retail investors’ interest is closely monitored, with the CEO emphasizing the focus on serving sophisticated traders in choppy markets.
Despite past struggles with volatility, Robinhood saw a record $6.5 billion in net deposits last month. Shares now trade above $45 after a rocky IPO. The S&P 500 plunged due to Trump’s tariffs but rebounded as the president announced a 90-day pause. Robinhood’s CFO noted increased engagement and positive signs in April.
Robinhood’s expansion into futures trading and prediction markets has contributed to its growth. The platform saw a surge in options trading, with users’ margin balances doubling from last year. The CEO highlighted the platform’s ability to open up new styles of trading for active traders, leading to a broad-based strength in retail engagement.
Despite positive engagement indicators, Robinhood shares dropped over 2% after Q1 earnings. While the company beat expectations, revenue decreased from a record high. Crypto revenues fell 30% due to a postelection rally in digital assets turning into a historic rout. The company continues to diversify its revenue streams to navigate market challenges. 1. The stock market surged today as the Dow Jones Industrial Average gained 300 points, reaching a new record high. Investors remain optimistic about economic recovery and corporate earnings.
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