Following a bullish forecast from Bernstein, Robinhood stock has surged by over 4% after a report predicting significant growth. This increase is attributed to the platform’s expansion into the crypto market, which has attracted a younger user base expected to boost the overall market capitalization. The HOOD price has experienced a remarkable 66% year-to-date growth, capturing the interest of both bulls and crypto enthusiasts.
Bernstein, a private wealth management company, anticipates Robinhood’s operating income to reach around $900 million this year. The firm’s analysts project revenues of $3.4 billion next year, with the market capitalization estimated to rise between $19 billion and $23 billion. This positive outlook follows Robinhood’s recent investments in the cryptocurrency sector, which have driven a surge in revenues. Notably, a 161% year-on-year increase in crypto-based revenue was reported in Q2 2024, boosted by the announcement of the acquisition of Bitstamp for $200 million. The integration of Bitstamp’s crypto exchange is expected to expand Robinhood’s reach to retail and institutional clients in various regions.
Furthermore, recent developments include Robinhood’s settlement with California authorities and efforts to expand services to the UK. Despite a temporary stock dip due to negative sentiment, analysts foresee broader growth in the future.
The HOOD price has risen by 4.77% today, with weekly inflows surpassing 8% as bullish activities intensify. The acquisition of Sam Bankman-Fried’s $600 million stake and the increasing appeal of Robinhood’s services to a younger demographic are highlighted in the report. Notably, approximately 60% of the company’s assets are acquired by users under 43 years old. With a 66% year-to-date increase in the HOOD price, optimistic projections are in place for the upcoming quarters.