TLDR Tech / Fintech
The $12B hole in Coinbase and Robinhood's Q126 Earnings
Both Robinhood and Coinbase missed analyst estimates last week as a prolonged crypto downturn dragged on trading activity, sending their shares down -13% and -5% on the news respectively, wiping off $12B of value. It exposes a deeper challenge for exchanges and neobrokers, who could be at a structural disadvantage as fintechs race to become holistic financial platforms for users. With the majority of revenue tied to volatile transaction fees on retail trading, investing into other financial products becomes much harder.
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