Wall Street bank JPMorgan praised Robinhood’s Q3 results, citing a solid performance but lower quality due to weaker crypto revenue and tax benefits driving the earnings beat. Analysts raised their price target to $130, but shares fell 11% to close at $127. Crypto revenue of $268 million missed estimates, impacting share prices.

Despite strong volume growth, Robinhood’s crypto revenue fell short of expectations, leading to a slip in the fee rate to 67 basis points. Prediction markets offset some weakness, but analysts warned of dependency on a small group of active traders. The platform’s margins are expected to continue improving, prompting a neutral rating on the stock.

Read more at Yahoo Finance: Robinhood’s Crypto Revenue Miss Tempers Solid Quarter: JPMorgan