Jim Cramer Left With 'Mixed Emotions' After Q4 Robinhood Numbers: Young People Are 'Trading Crypto And Options Instead Of Investing In Stocks'

CBNC ‘Mad Money' host Jim Cramer on Wednesday admitted to having “mixed emotions" about Robinhood’s fourth quarter.

What Happened: In a tweet on X, Cramer appreciated the influx of young investors into the market but expressed concern about the high numbers engaging in cryptocurrency and options trading instead of traditional stock investments. 

"I was of mixed emotions about the Robinhood quarter. So great to see so many young people join the market, But such a huge percentage of users are trading crypto and options instead of investing in stocks. I would like to see more balance…"

Robinhood noted a 10% yearly increase in cryptocurrency revenue in the fourth quarter, tallying up to $43 million. The company attributed this rise to heightened user engagement and an 89% boost in trading volume compared to the previous quarter, spurred by excitement over new Bitcoin ETFs and a rally in the crypto sector.

Crypto revenue was higher than equities revenue of $25 million, up 19% year-over-year. 

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Why It Matters: Addressing an analyst’s query on the earnings call Tuesday, Robinhood CFO Jason Warnick while engaging with analyst Alex Markgraf pointed out, “So we're really pleased to be offering all 11 of the Bitcoin BTC/USD ETFs on the first day of trading, I think that was a great outcome for customers.” He observed considerable customer interest in ETFs, which he views as supplementary to their core operations, evident by the 5% of crypto trading on ETFs, leaving the majority—95%—to spot trading.

Cramer, however, remains skeptical about the near future of Bitcoin’s valuation. In January, he warned followers of a challenging road ahead for BTC, suggesting that the current price decline is just the “nasty beginning.”

Photo: Courtesy of Scott Beale on Flickr

Price Action: At the time of writing, BTC was trading at $52,368 up 5.12% over the past 24 hours, as reported by Benzinga Pro.

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