Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta
Finance
Robinhood sees $100 million finance costs tied to regulatory issues in third quarter
The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing Rights
Sept 29 (Reuters) – Robinhood Markets (HOOD.O) expects a $100-million charge in the third quarter to resolve some legal and regulatory matters that were previously disclosed, the trading app operator said on Friday.
The company has had several run-ins with regulators. It was also at the center of the “meme stock” trading frenzy in early 2021, when a group of retail investors on social media bought shares of highly-shorted stocks such as GameStop (GME.N).
However, a stormy economic climate last year spooked retail traders, Robinhood’s chief customer base.
The company beat revenue expectations during the second quarter and reported a profit for the first time as a public company in August.
Robinhood’s shares were marginally higher after the bell.
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