Robinhood shares drop 4% after crypto trading revenue falls to $100M

Robinhood shares fell around 3% in initial after hours trading Wednesday despite the brokerage reporting record second quarter revenue and earnings that exceeded Wall Street expectations. The company generated $1.31 billion in total net revenue, an increase of 32% from $989 million during the same quarter last year. The result came in above the approximately $1.26 billion expected by analysts. Diluted earnings per share rose 48% to $0.62 from $0.42 a year earlier, compared with Wall Street expectations of around $0.41. Net income increased 48% to $573 million. However, Robinhood said its quarterly results included $129 million in gains primarily related to the deconsolidation of Robinhood Ventures Fund I. Those gains contributed approximately $0.14 to diluted earnings per share. Transaction based revenue increased 44% to $776 million as growth in equities, options, and event contracts offset weaker cryptocurrency activity. Revenue from event contracts increased more than tenfold to $156 million, while options revenue climbed 29% to $342 million. Equities revenue nearly doubled, rising 95% to $129 million. Crypto trading revenue moved in the opposite direction, declining 38% to $100...