Robinhood’s short run as a meme stock has crashed from dream into reality.
Shares of the stock-trading app dropped 8% on Thursday to $45.79 after the company reported earnings for the first time since its July IPO after climbing as high as $85 on Aug. 4.
Robinhood said second-quarter revenue more than doubled to $565 million, close to the high end of its forecast. But a significant amount of that growth came from dogecoin, a cryptocurrency that was started as a joke.
Revenue from crypto transactions surged more than 45-fold from a year ago to $233 million, accounting for 52% of total transaction-related revenue, up from 17% in the first quarter and 4% in the fourth quarter of last year.
Within Robinhood’s crypto business, which includes buying and selling of bitcoin and several other digital currencies, 62% of revenue came from trading in dogecoin. That means dogecoin, which more than quadrupled in value in the second quarter, accounted for almost one-third of Robinhood’s total transaction revenue.