Here’s where Robinhood’s retail traders have flocked as the Iran conflict rages on
Robinhood traders shifted toward prediction markets, options and pre-earnings stock trades as the Iran conflict drove volatility. The firm reported Q1 revenue of $1.07 billion (vs. FactSet $1.14 billion) and EPS of $0.38, missing analyst expectations; transaction revenue rose 7% while crypto-related revenue plunged 47%. Robinhood said April was on pace to be its best month so far for options and stock trading, and Gold subscribers climbed 36% to 4.3 million. The company plans to invest an extra $100 million to build out new "Trump account" interfaces with BNY as partner. Despite operational positives, shares fell about 6.6% after hours on the results, reflecting investor disappointment with the top-line and crypto weakness. The mix shift toward prediction markets and options could reshape revenue composition and volatility exposure going forward.