Jim Cramer on Robinhood: I Don't Want to Hear 'Seasonal' From a New Company

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Despite reporting that revenue more than doubled in its first quarter as a public company, Robinhood  (HOOD) - Get Robinhood Report plunged after warning that trading is slowing.

The trading app reported a second-quarter loss of $502 million, or $2.16 a share on revenue of $565 million. Crypto transactions in the quarter attributed $233 million to the total revenue.

In Wednesday's AAP Daily Rundown, Cramer told senior analyst Jeff Marks that Robinhood could become the barometer of whether investors like the market or not.

So what should you expect from the third quarter? Robinhood said "seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter."

Cramer told Marks Thursday that the language of the release left him feeling slightly concerned as his experience tells him that the third quarter is typically a busy period of trading. 

"I don't want to see seasonal when I'm dealing with a new company," Cramer said. 

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