Thursday Mar 14 2024 14:50
4 min
Shares of Robinhood Markets surged over 7.5% in early trading on Thursday, fueled by the brokerage's announcement of significant asset growth for February, which signaled a continued boost from the resurgence in cryptocurrency and stock trading.
At the time of writing on March 14, Robinhood stock, which trades on the Nasdaq exchange under the HOOD ticker, was up 6.65% at $18.31.
The brokerage witnessed a 16% month-over-month increase in assets under custody (AUC), reaching $118.7 billion by February's end, surpassing the $100 billion mark for the second consecutive month.
Originating from Menlo Park, California, Robinhood recorded $102.6 billion in AUC for the quarter ending December 31, achieving its peak since the meme stock trading wave in 2021.
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On Thursday, the asset management firm Bernstein initiated coverage on Robinhood shares, assigning an "outperform" rating based on the projection that the company’s cryptocurrency revenues would amplify ninefold by 2025, adding that its "full suite crypto offering within a regulated broker platform is in a sweet spot."
The firm anticipates the cryptocurrency market's total valuation to escalate to $7.5 trillion by 2025, up from the current $2.6 trillion.
The brokerage said Robinhood had a competitive edge over rivals like the Coinbase exchange, due to lower fees and the reluctance of traditional brokers to enter the crypto trading domain. Mid-February, Robinhood revealed an unexpected quarterly profit and outlined its goal for 'profitable growth' in 2024.
Driven by a surge in activity from retail traders, Robinhood's core clientele, the brokerage has thrived as Bitcoin breached its 2021 peak, exceeding $73,000, alongside the S&P 500 index setting new records this year.
Despite facing challenges with declining active user numbers, Robinhood has successfully increased revenue per customer. The shares closed at a more than two-year high on Wednesday, although they still fall short of their $38 IPO price in July 2021.
According to 13 analysts surveyed by TipRanks that offered 12-month Robinhood stock price targets, the consensus forecast for HOOD last stood at $15.58 — a potential 15% downside from its price of $18.31 on March 14, 2024.
The highest listed Robinhood share price forecast on TipRanks was $30, while the lowest was listed at $11. Of the 13 analysts surveyed, four offered a Buy rating on HOOD stock, while six gave it a Hold and three rated it a Sell.
When considering shares and indices for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
Note that trading cryptocurrency CFDs and spread bets is restricted in the UK for all retail clients.
When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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