BUZZ-Robinhood Markets slumps on quarterly profit miss

Robinhood

Robinhood

HOOD

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** Shares of Robinhood Markets HOOD.O down 9% at $74.67 in pre-market trading after its first-quarter profit missed estimates on weak transaction revenue

** After market hours on Tuesday, company reported first-quarter profit of 38 cents/shr vs Wall Street estimates of 44 cents, as transaction-based revenue of $623 million missed the $728.2 million consensus, per LSEG data

** Weaker-than-expected take rates in options and cryptocurrency trading overshadowed growth in customer assets and deposits, company says

** "Commentary suggests capture rates in crypto/options continue to decline sequentially, and we are not expecting much improvement in NII near term," KBW analysts say

** HOOD stock has sunk about 27.4% year-to-date, compared with a 6.1% rise in the Nasdaq .IXIC