Robinhood buys Bitstamp for $200M, shares rise 6.5%, entering European and Asian markets

From Nasdaq: 2024-06-07 05:45:00

Robinhood Markets, Inc. announced an agreement to acquire Bitstamp for $200 million, boosting its shares by 6.5%. Bitstamp, licensed in EU states, will help Robinhood enter European and Asian markets, competing with industry leaders like Coinbase and CME. Robinhood’s revenue and EPS have surged, with stock price up 80.3% in 2024, but legal compliance concerns loom. CEO Vlad Tenev emphasizes the need for a trusted, compliant exchange.

Robinhood’s expected earnings growth rate is 200%, bolstered by the acquisition of Bitstamp, enhancing its reputation and appeal to regulators. With Zacks Rank #2 (Buy), the company’s earnings estimate has surged by 144% in the past 60 days. Despite legal challenges, Robinhood looks promising for investors to watch going forward.

A Zacks expert picks a chemical company as the “Single Best Pick to Double,” citing soaring earnings estimates and potential for significant upside. The company, up 65% in the past year, offers a rare chance for retail investors to capitalize on unrelenting demand and share repurchase plans. This opportunity could rival recent Zacks success stories like Boston Beer Company and NVIDIA.

Read more at Nasdaq.: Robinhood (HOOD) Stock Up 6.5% on $200M Bitstamp Buyout Deal