The online brokerage Robinhood went public on July 29, 2021.
Spencer Platt/Getty Images

Robinhood Markets is having a not-so-great month.

The trading platform’s latest operating data showed weaker trading activity in July largely due to lower volumes of cryptocurrency trades. The data help explain the company’s decision, announced in early August, to slash 23% of its workforce.

Robinhood on Thursday reported that daily average revenue trades (DARTs)—or average trades a day that generated revenue—for crypto were down 16% in July versus June. Total crypto traded was $6 billion, down about 1% month over month. DARTs declined 9% month over month for equities and options.

Shares of Robinhood, which went public last year, fell 5.4% to $9.62 in premarket trading Friday. In the past five days, the stock has declined 3.2%.

Also in August, Robinhood’s cryptocurrency trading unit was fined $30 million by New York’s top financial regulator for alleged violations of anti-money-laundering and cybersecurity regulations.

That announcement arrived on Aug. 2, the same day that CEO Vlad Tenev announced job cuts. Tenev acknowledged he had misjudged the trading environment; he said he previously had expected the company would continue to see the heightened retail trader engagement it saw during the Covid-19 era.

Still, Piper Sandler’s Richard Repetto kept his price target of $10 and Neutral rating on the stock unchanged Thursday. Compared with his estimates, the July trading activity was generally in-line.

Overall analysts are divided on the stock. Of the 14 analysts tracked by FactSet who follow the company, four rate the stock as a Buy, while seven have it at Hold, and three as Sell.

Write to Karishma Vanjani at karishma.vanjanidowjones.com.

The online brokerage Robinhood went public on July 29, 2021.

Robinhood Stock Is Struggling. Blame Crypto Struggles.