4 months ago
Robinhoood shares jumped 13% successful aboriginal trading Thursday aft fourth-quarter net bushed estimates.
Feb 13, 2025, 12:03 p.m. UTC
Robinhood (HOOD) shares surged successful pre-market enactment Thursday aft the fashionable trading app reported fourth-quarter net that bushed Wall Street estimates driven by a monolithic leap successful crypto revenue.
The institution reported $358 cardinal successful crypto transaction gross successful the quarter, the highest publication from digital-asset trading to date, Wall Street slope JPMorgan (JPM) said successful a probe study Wednesday.
JPMorgan raised its terms people for the banal to $45 from $39, portion maintaining its neutral rating. Citi (C) raised its people to $60 from $45 and kept its neutral standing connected the stock. Broker Bernstein much than doubled it terms nonsubjective to $105 from $51 and kept an outperform standing connected the shares.
The banal jumped 13% to $63.20 successful aboriginal trading Thursday pursuing results, released aft the marketplace closed connected Wednesdy.
Robinhood said fourth-quarter revenue roseate 115% from the erstwhile twelvemonth to $1.01 billion, beating Wall Street analysts' estimation of $945.8 million, according to FactSet data. Transaction-based net accrued 200% year-on-year, chiefly owed to a 700% emergence successful cryptocurrency revenue.
Crypto gross usually contributes 10%-20% of full revenue, JPMorgan noted. The 46% leap successful full cryptocurrency marketplace headdress successful the play and the summation successful Robinhood notional volumes, which were 393% higher quarter-on-quarter, fueled the gross beat.
The institution has large plans for its crypto business. "Management seeks to adhd much tokens, fortify its wallet offering, adhd an bid publication with speech routing functionality, integrate Bitstamp and research tokenization longer-term," the study said.
Robinhood has benefitted from favorable trends since the commencement of the year, with "crypto marketplace tailwinds and retail enactment remaining strong," Citi said.
If this affirmative backdrop is maintained, the shares are apt to spot support, but investors should expect volatility. While the slope has go much affirmative connected the company's cardinal outlook, it said it preferred to hold for a "more tenable introduction point."
Bernstein reiterated that Robinhood was the champion thought successful the broker's planetary integer assets coverage. It said it expected continued momentum successful the archetypal 4th "driven by crypto volatility and a sustained terms cycle."
Read more: Robinhood's Big Earnings Beat Could Bode Well for Coinbase
Will Canny
Will Canny is an experienced marketplace newsman with a demonstrated past of moving successful the fiscal services industry. He's present covering the crypto bushed arsenic a concern newsman astatine CoinDesk. He owns much than $1,000 of SOL.
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