From Nasdaq

July 26, 2024 8:29:00 AM:

Robinhood Markets, Inc. (HOOD) has seen significant growth this year, with its stock rising by 66.3%, outpacing industry and S&P 500 growth. Technical indicators suggest continued strength as the stock trades above its 50-day moving average, thanks to efforts to diversify revenues and expand globally.

Robinhood has evolved from a digital assets brokerage to a diversified financial services provider, expanding into retirement and credit card accounts. In 2021, transaction-based revenues accounted for 75% of total revenues, but this decreased to 42% in 2023 due to diversification efforts.

Robinhood aims to enhance its offerings by acquiring Pluto Capital Inc., an AI-powered investment research platform. The company plans to acquire Bitstamp, a global crypto exchange, for $200 million, expanding its product offerings beyond traditional transaction-related revenues.

Robinhood launched its trading app in the U.K., with plans to offer cryptocurrency futures in the U.S. and Europe and CME-based futures for Bitcoin and Ether. A share buyback program of up to $1 billion was announced in May to return value to shareholders.

Despite regulatory hurdles in the U.S. crypto market, analysts remain bullish on Robinhood’s prospects, with upward estimate revision trends. With HOOD trading at a discount compared to industry peers, investing in this stock as it expands globally and diversifies revenue streams could be a wise decision.

Read more at Nasdaq: Robinhood (HOOD) Surges 66% YTD: Is it a Good Time to Buy?