Following a positive Bernstein report foreseeing substantial growth, Robinhood stock has surged by over 4%. The company’s venture into the crypto market is attracting a younger demographic, expected to drive the platform’s overall market capitalization. The price of HOOD has seen a remarkable 66% year-to-date increase, capturing the attention of both bullish investors and crypto enthusiasts.
Bernstein’s prediction about Robinhood is optimistic, estimating the company’s operating income to reach approximately $900 million this year. It’s projected that the company could generate revenues totaling $3.4 billion next year, while its market capitalization could jump between $19 billion and $23 billion.
The recent focus on cryptocurrency by Robinhood has been a significant driver of revenue growth. Notably, the company’s crypto-related revenue surged by 161% year-on-year in Q2 2024, reaching $81 million. Additionally, Robinhood’s strategic move to acquire Bitstamp for $200 million aims to integrate its crypto exchange, enabling access to retail and institutional clients across major markets.
Despite some setbacks, such as a stock price dip due to negative sentiment following a settlement with California authorities and a push for expansion in the UK, analysts remain optimistic about Robinhood’s broader growth potential.
Today, Robinhood’s stock price has risen by 4.77%, with weekly inflows exceeding 8%, fueled by bullish trading activities. The purchase of a $600 million stake owned by former FTX CEO Sam Bankman-Fried has further propelled the stock’s upward momentum. The report also highlights a growing interest from younger investors in Robinhood, with approximately 60% of the firm’s assets acquired by users under 43 years old. The current 66% year-to-date surge in HOOD price sets the stage for continued bullish projections in the upcoming quarters.