Robinhood Markets stock was falling early Wednesday. Wall Street analysts are skeptical about the digital brokerage’s ability to turn around a slump in trading on its platform.
The company’s third-quarter loss was better than expected, but the market was focused on an 11% fall in transaction revenue from the same period a year earlier. Worthington said he continues to see Robinhood as limited in its ability to generate competitive margins due to its focus on small accounts. The company said its average revenue per user for the quarter was $80, down from $84 in the second quarter.Newsletter Sign-up Robinhood’s next growth play is expansion of its brokerage operations to the U.K. and the beginning of cryptocurrency trading in the European Union.