Robinhood stock surges on Outperform rating, trading volumes
Share of trading platform Robinhood Markets (HOOD) surged on Thursday due to a couple of upbeat headlines. The first is better-than-expected trading volumes in February. Robinhood reported an increase in trading volumes across all asset classes compared to January 2024. The company also reported assets under custody of $118.7 billion, up 16% from January. As CEO Vlad Tenev told Yahoo Finance, given the size of Robinhood's crypto trading business, "when the crypto markets see a lot of excitement, we benefit from that."
Bernstein also initiated coverage of Robinhood with an Outperform rating and a $30 price target. In a note, analysts say they expect to see "a monster of a crypto cycle over 2024-25," which Robinhood stands to benefit from. The move comes as bitcoin (BTC-USD) hits record highs.
Yahoo Finance's Seana Smith and Jared Blikre discuss the reports in the video above.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
SEANA SMITH: Let's take a look at another trending ticker that we are watching, and that is Robinhood. Shares moving to the upside, up just about 7% in today's trading action. Bernstein initiating coverage with an outperform rating, a $30 price target, saying that it continues to benefit from the crypto comeback. And Jared, when you take a look at what Bernstein is saying, comparing that to the numbers that were just released from Robinhood for the month of February, they clearly are benefiting from that crypto comeback.
JARED BLIKRE: Yeah. Real quickly, assets under management for Hood custody-wise, $119 billion. That's up almost 60% year-over-year. Equities trading volume, that's just stocks alone, up 41%. Options contracts trading volume, that is up 33%. And cryptocurrencies up 86%. And a lot of that is just a function of prices. So we're seeing stocks at record highs. We're seeing crypto at record highs. I think there's a huge retail wealth effect that we're seeing with respect to these crypto prices where people are finally back in the green on their crypto purchases there.
SEANA SMITH: They certainly are. When you take a look at these numbers, extremely impressive. Now, this is the second month in a row for Robinhood. One of their milestones that we should point out here when it comes to the second month in a row with assets over $100 billion and digging a little bit further into this call, Bernstein expecting crypto revenue to grow nine-fold in 2025.
