Robinhood Stock Soars After Announcement on Extended Trading Hours

Rafael Henrique/SOPA Images/Shutterstock / Rafael Henrique/SOPA Images/Shutterstock

Robinhood announced it is extending trading hours, “to build a world where people have the flexibility to invest on their own timelines and on their own terms.”

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Following the announcement, the stock — which had fallen 13.7% so far — closed at 24.2% on March 29.

“Time-wise, extended hours trading began rolling out on March 24 for a small percentage of clients and will become available to all clients in the coming weeks,” a Robinhood spokesperson told GOBankingRates. “We are moving towards 24/7 investing and are starting with new extended hours from 7am-8pm ET. We’ll have more to say about 24/7 trading plans at a later date.”

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By extending pre-market trading to 7 a.m. from 9 a.m. ET and after-hours trading to 8 p.m. ET, the company is adding an additional four hours to fulfill orders, according to a blog post.

“Our clients often tell us that they are at work or busy during regular market hours, leaving them unable to invest on their own schedule or to evaluate and respond to important market news. We’ve even seen a community of Robinhood early risers and night owls logging in only outside of regular market hours,” the company said in the post. “They juggle a lot, from full-time jobs to school, families and side jobs. Our new extended stock trading hours will give them more options to manage their portfolio at a time that suits them, whether that be early morning or evening.”

In a Twitter thread on March 28, CEO and co-founder Vlad Tenev wrote that “Robinhood wants to detach our markets from US East Coast working hours and invest in stocks 24 hours a day. And serving clients around the world means that.” we need to give people access to the markets in due time.”

Robinhood has tried to diversify its core businesses. The stock crashed after the company’s fourth-quarter earnings on Thursday, January 27, which outlined a grim first quarter of 2022, with total net income expected to be less than $340 million — a 35% drop compared with the first quarter of 2021, according to the financial report.

In addition, Robinhood’s monthly active users fell to 17.3 million last quarter, from 18.9 million in the third quarter, according to the filing, while average revenue per user (ARPU) for the quarter also fell 39% to $64. year-over-year, compared to $106 in the fourth quarter of 2020.

“The decline was primarily related to lower per-user trading volumes for options and stocks and lower per-user interest income from securities lending due to declines in market rates earned on securities lent, partially offset by higher per-user trading volumes for cryptocurrencies,” read the submission.

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For 2022, Robinhood said it will build products intended to aid in long-term investments, “with the goal of making it easier for customers to build for their future no matter where they are on their financial journeys,” the filing said. The company added that it will invest in spending and savings products and will introduce a new day-to-day spending experience in the coming months to help customers build a portfolio as a result of spending.

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About the author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including: Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also served as vice president/senior content writer for major New York City financial firms, including New York Life and MSCI. Yael is now a freelancer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Université Toulouse-Jean Jaurès, France.

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