The pandemic isn’t slowing anything down for Robinhood, the stock trading app popular with millennials. In fact, Robinhood saw its popularity surge in 2020, adding 3 million customers in just four months. Robinhood currently has 13 million users, up from 1 million in 2016.
According to an SEC filing, Robinhood made $180 million in the second quarter. In the first quarter, it made $91 million. The majority of Robinhood’s revenue comes from options trading, which experts say can be risky, especially for amateur investors.
Robinhood reported 4.31 million daily active trades for June, well ahead of rivals like E-Trade, which reported about a quarter as many for the month.
The company attributes its rise in popularity amid the pandemic to a volatile market that attracts traders, and the work-from-home environment which has individuals at home with more time on their hands. The average Robinhood user is 33 years old.
According to Jonas Elmerraji of Trend Playbook, Apple (AAPL) -Get Report, Microsoft (MSFT) -Get Report, and Tesla (TSLA) -Get Report are three of the most widely-held stocks on the Robinhood platform as of Thursday's close.
The company said that in May it secured a $280 million funding round that values the company at $8.3 billion.
However, Robinhood has not been without controversy. In June, a young Robinhood investor named Alexander E. Kearns committed suicide after running up what he believed to be massive losses in his trading account.
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