Robinhood Markets, Inc. (NASDAQ:HOOD), a California-based monetary companies firm, presents a variety of investor companies together with cryptocurrency buying and selling, dividend reinvestment, and fractional share funding. The platform permits real-time buying and selling in shares, crypto, and choices, incomes transactional charges from routing orders to market makers upon execution.
With its shut affiliation with the cryptocurrency market, Robinhood shares have surged 35% for the reason that yr started, in tandem with Bitcoin’s breakout to document highs. Regardless of this, HOOD nonetheless trades over 11% under its 52-week excessive.
In its This fall outcomes launched in February, Robinhood posted a revenue of $30 million, marking its second worthwhile quarter. Income for the interval reached $471 million, up 24% from the earlier yr. Curiosity income skilled a notable 41% enhance, reaching $236 million, whereas transaction-based income amounted to $200 million, marking an 8% year-over-year rise. Notably, cryptocurrency income contributed $43 million to the latter, offsetting a slight decline in choices income.
Nevertheless, for the complete yr, HOOD reported a web lack of $487 million, regardless of a 37% YoY income enhance to $1.87 billion. Administration highlighted its increasing world presence in crypto companies through the quarterly earnings name, noting brokerage companies within the U.Okay. and crypto choices within the EU.
Extra not too long ago, Robinhood reported a ten% sequential enhance in crypto buying and selling volumes to $6.5 billion in February.
Bernstein commenced protection of Robinhood with an “Outperform” ranking and set a value goal of $30. The analysts anticipate important institutional adoption of Bitcoin to drive HOOD’s revenues considerably increased, projecting a nine-fold enhance by 2025, with the full crypto market cap reaching $7.5 trillion.
This new value goal from Bernstein, the very best on Wall Avenue, implies a possible upside of 74.4% from present ranges.
Nevertheless, different analysts maintain various views on Robinhood, with a consensus “Maintain” ranking amongst 15 analysts overlaying the inventory. Whereas 4 analysts charge it as a “Sturdy Purchase,” eight recommend “Maintain,” one recommends a “Average Promote,” and two advocate a “Sturdy Promote.” The imply value goal from this group stands at $14.61, indicating a possible draw back of 15.5%.
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