Benzinga | Aug 19, 2021 11:04AM EDT

Jim Cramer Says Robinhood Has Become A 'Dogecoin Gateway'

Robinhood Markets Inc (NASDAQ:HOOD) is trading lower today after the company reported its second-quarter financial results.

Robinhood reported quarterly revenue of $565 million, representing an increase of 131% year over year. The company reported average revenue per user of $112, which was down from $115 year over year.

Related Link: Dogecoin Alone Accounted For 62% Of Crypto Revenue For Robinhood In Q2

Robinhood also said it expects "seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts."

It's surprising to see how much of the company's revenue came from Dogecoin (CRYPTO: DOGE), Jim Cramer said Wednesday on CNBC's "Squawk On The Street."

Robinhood announced that the second quarter was the first time a larger share of new customers placed their first trade in crypto rather than equities.

It's very clear that Robinhood has become a crypto company, opposed to an equities company, Cramer said: "When you peel back the onion of Robinhood it seems like it's a Dogecoin gateway."

Many customers opened new accounts to trade Dogecoin, he said, adding that he doesn't think such is sustainable.

Cramer told CNBC that he would prefer to see new investors putting money into a company like Ford Motor Co (NYSE:F) instead of engaging in speculative trading of Dogecoin.

HOOD Price Action: At last check Thursday, Robinhood was down 8.61% at $45.51.

Photo: Ivan Radic from Flickr.