Investing.com – Robinhood Markets stock (NASDAQ) dropped 12% and traded below its IPO Price of $38 Wednesday. It was the result of the company’s August warning that retail activity is slowing down.

“In the absence of any changes to the market environment or exogenous events, we believe this may result in quarterly revenues no greater than $325 million and full year revenue of less than $1.8 billion. Additionally, we expect new funded accounts for the fourth quarter will be roughly in line with the 660,000 opened in the third quarter of 2021,” the company said in its earnings release.

In the third quarter, total revenue increased 35% to $365m.

As people sat in their own homes, they were able to sell and buy cryptos and other equities as never before. The platform helped greatly during this surge in retail trade. The platform was popular with millennials as well as the younger crowd who tried their hand at cryptocurrency trading. The frenzy erupted in July and September as the economy opened up more public space and other entertainment options.

The craze for meme stocks which led stocks like GameStop (NYSE:) and AMC Entertainment (NYSE:) to climb by a factor of hundreds also fueled the platform’s growth. These stocks now lead a more common life.

Trading in options accounted for 61% more of Robinhood’s $267 million revenues from platform transactions.

Robinhood reported that crypto-based trading revenue increased more than 10x from last year to $51million, however it was only 78% below its second quarter level. Cryptos contributed only 19% to the July-September trading revenue, despite having made up more than half the total.

Dogecoin was 62% in Robinhood’s total cryptocurrency transactions volume from July to September. It started out as an absurd joke.

The Equities Trading Revenue fell 27% to $50 Million from last year.

Tenev stated that the net loss of $1.32B was mainly due to stock-based compensation.