Plus500 has been having quite a rough first quarter in 2019, alongside multiple other competitors. But when it comes to the second quarter it seems like the service provider entered April of 2019 on the right foot.
Plus500 is now entering Q3 with quite the task at hand, to best its Q2 performance of a 74% uptick in revenue according to their report on the London Stock Exchange.
Considering the revenues of the first six months of the year, the exchange has generated around $150 million so far, with six more months to go.
The Q1 fiasco for Plus500
The company’s revenues tanked in the first three months of 2019 due to increased regulatory pressure from ESMA (European Securities and Markets Authority) as well as lower trading volumes due to future uncertainty in the market.
Q1 was a terrible financial segment for Plus500 as not only did the revenue drop by a significant margin, but also the stock price tanked around 44% after the news came out.
However, thanks to the new quarterly report from Plus500, the stock price has managed to climb its way back up a bit, but not necessarily into a positive zone. It is still down by 24% compared to last year’s level.
Plus500 crash was tied to cryptos
2018 was a massive hit for every CFD brokerage in the world. People were immediately seeing serious issues with the crypto winter and overall frozen market for the long term and therefore managed to milk the leverage as much as possible.
The crypto crash was terrible monetary news for firms like Plus500, from which they are still trying to recover.
Pair that up with a recent market uptrend next to the leverage restrictions and we get the picture as to why the company struggled in the past but managed to enter the third quarter in a better position.