(Bloomberg) — Robinhood Markets Inc. shares surged Wednesday, a day after the struggling online brokerage dismissed almost a quarter of its staff and posted its sixth straight quarterly loss.
The stock climbed 13% to $10.42 at 10:49 a.m. in New York and earlier rose as much as 17%, the biggest intraday advance in more than a month. It’s still down 73% since Robinhood’s initial public offering in July 2021.
On Wednesday, the company said second-quarter revenue tumbled 44% from a year earlier to $318 million, with monthly active users dropping to 14 million at the end of June, a decline of about 7 million from the middle of 2021. The firm posted a $295 million loss in the period.
A pandemic-fueled boom in retail trading helped propel Robinhood to last year’s IPO, but its popularity has waned significantly since then amid surging inflation, recession fears and sharp declines in stock and cryptocurrency markets.
Read more: Robinhood Slashes 23% of Its Workforce in Sweeping Overhaul
The latest round of job cuts were the second this year for Menlo Park, California-based Robinhood. It dismissed 9% of its workforce in April.
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