Robinhood (HOOD) stock soared 13% in early trading Thursday after the company’s fourth-quarter earnings beat expectations, driven by a massive surge in cryptocurrency trading revenue.
Key Takeaways:
Record-Breaking Crypto Revenue
$358 million in crypto transaction revenue (highest quarterly contribution to date).
700% YoY surge in cryptocurrency trading revenue.
Crypto now accounts for 10%-20% of total revenue.
Analysts Raise Price Targets
JPMorgan: Raised target to $45 (from $39) – Neutral rating.
Citi: Raised target to $60 (from $45) – Neutral rating.
Bernstein: More than doubled price target to $105 (from $51) – Outperform rating.
Stock Performance & Revenue Growth
Shares jumped 13% to $63.20 after the earnings release.
Quarterly revenue rose 115% YoY to $1.01 billion, beating estimates of $945.8 million.
Transaction-based revenue surged 200% YoY, fueled by a 393% increase in notional crypto volumes.
Robinhood's Crypto Expansion Plans
Adding more tokens and enhancing wallet features.
Integrating Bitstamp and introducing an order book with exchange routing.
Exploring tokenization and advanced crypto services.
What’s Next?
Crypto Volatility Driving Momentum
Crypto market cap surged 46% in Q4, supporting Robinhood’s trading boom.
Analysts expect sustained growth into Q1 2025, with crypto market trends and retail activity remaining strong.
Volatility Ahead?
Citi remains cautious about entry points, advising investors to expect price swings.
Bernstein views Robinhood as the top pick in digital assets brokerage, citing continued growth potential.
Robinhood's crypto-driven revenue explosion has cemented its position as a leading retail trading platform. With strong institutional support, upcoming crypto innovations, and a bullish market outlook, the stock may continue to see upward momentum in 2025, according to CoinDesk.
