Popular consumer investment app Robinhood announced on Tuesday that it will be expanding morning and evening stock trading hours as it works towards its goal of investing 24/7. Previously, the app offered to trade from 9:00 am to 6:00 pm ET – 30 minutes before the market opens and 2 hours after the market closes. New application hours are now from 7:00 to 20:00.
Investors reacted positively to the news, with Robinhood’s own shares up more than 25% since the announcement.
The fintech company explained the reason for the expansion in a blog post, stating that the additional hours of trading would better serve the needs of its customers.
“Our clients often tell us they are at work or busy during normal market hours, preventing them from investing their time or evaluating and responding to important market news,” the company writes. It was also noted that many Robinhood customers accessed the app exclusively during non-market hours, both in the morning and afternoon. “They do a lot, from full-time jobs to school, family and isolated pursuits,” Robinhood said. “Our new extended stock trading hours will give them more flexibility to manage their portfolios the way they want, whether it be in the morning or in the evening.”
The update is one of many that the company has made since its inception to address the need for consumer investors to trade stocks with no commission on top of the app’s core value.
In recent years, Robinhood has expanded into crypto by introducing fractional stocks, adding auto investing, and introducing 24/7 customer support.
This month, Robinhood also launched its own Cash Card, which allows customers to access their spending money and, if they wish, make dollar-accurate purchases, then further invest them in assets of their choice. The all-in-one service competes with other fintechs, such as early access to direct deposit, as well as the absence of traditional banking fees, membership fees, ATM fees, or overdrafts. The company said the card will also be based on its mission to democratize finance.
Robinhood has seen a significant number of users using its app since its launch ended last year with 22.7 million accounts, up 81% from 12.5 million in December 2020, attracting new and often younger investors due to its ability to stimulate stock trading. market for the first time.
But Robinhood’s growth has slowed in recent quarters, pushing its stock lower. The company reported fourth-quarter 2021 sales growth of 14% from the same quarter a year ago, less than half the growth rate compared to the summer months. It also provided a weak current-quarter revenue guidance and fell short of Wall Street’s expectations for fourth-quarter revenue of $362.7 million versus an estimated $376.3 million and a loss of 49 cents per share above guidance. which is a loss of 35 cents.
Shares are down 70% from their 2022 IPO price and 87% from their August highs.
Additional trading hours could potentially help Robinhood grow again if its claim that its clients want more opportunities to trade outside of normal market hours is correct. Of course, Robinhood also warned of the risks involved in trading for a long time, but noted that the extra hours would give clients the opportunity to trade based on post-market quarterly earnings announcements and based on overseas market activity.
The new trading hours will make Robinhood more competitive with traditional brokers such as Charles Schwab and Fidelity, which already offer a wider range of trading.