Robinhood Markets, Inc. (NASDAQ:HOOD), a California-based monetary companies firm, affords a spread 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 autumn 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% improve, 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 improve to $1.87 billion. Administration highlighted its increasing international presence in crypto companies in the course of the quarterly earnings name, noting brokerage companies within the U.Okay. and crypto choices within the EU.
Extra just lately, Robinhood reported a ten% sequential improve in crypto buying and selling volumes to $6.5 billion in February.
Bernstein commenced protection of Robinhood with an “Outperform” ranking and set a worth goal of $30. The analysts anticipate vital institutional adoption of Bitcoin to drive HOOD’s revenues considerably larger, projecting a nine-fold improve by 2025, with the whole crypto market cap reaching $7.5 trillion.
This new worth 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 protecting the inventory. Whereas 4 analysts charge it as a “Robust Purchase,” eight counsel “Maintain,” one recommends a “Reasonable Promote,” and two advocate a “Robust Promote.” The imply worth goal from this group stands at $14.61, indicating a possible draw back of 15.5%.
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