Robinhood sees retail traders taking a breather in third quarter

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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

Aug 18 (Reuters) – Robinhood Markets Inc (HOOD.O) expects retail investors to become less active in the third quarter, after frantic trading in crypto currencies helped more than double its revenue, the online brokerage said in its first earnings report as a public company.

A slowdown in retail trading, which has been one of the standout phenomena of the pandemic-era, comes as the U.S. eased some coronavirus restrictions in recent weeks. One analyst said the resumption of sports and other activities likely took some of the retail interest.

“We aren’t talking about people who are investors at all but gamblers and now that we’ve got sports back? Betting on sports is a lot more fun than betting on the stock market,” said David Trainer, chief executive officer of investment research firm New…

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