Robinhood’s Crypto Revenue Soars – Is It Time to Jump on the Bandwagon? 🤔

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The 411:

  • 📈 Robinhood shares skyrocket after crypto-fueled Q4 earnings surprise!
  • 🎯 Analysts from JPMorgan, Citi, and Bernstein boost their price targets for the stock!
  • 💰 Robinhood reports a whopping $358 million in crypto transaction revenue – their highest digital-asset earnings yet!

Robinhood (HOOD) shares went wild in pre-market trading Thursday, following the popular trading app’s Q4 earnings report that crushed Wall Street expectations. The revenue boost? You guessed it – crypto!

The company raked in $358 million in crypto transaction revenue in Q4, setting a new record for digital-asset trading, according to JPMorgan’s research report Wednesday.

Analysts are raising their price targets, with JPMorgan at $45 (neutral), Citi at $60 (neutral), and Bernstein more than doubling theirs to $105 (outperform).

With a 13% surge to $63.20 in early trading Thursday, it seems like investors are all in on the crypto craze!

Robinhood reported a 115% YoY revenue surge to $1.01 billion, crushing the estimated $945.8 million. Transaction-based earnings skyrocketed 200% YoY, thanks to a 700% crypto revenue increase.

Crypto normally contributes 10%-20% of total revenue, but Q4’s 46% surge in the total cryptocurrency market cap and a 393% increase in Robinhood notional volumes fueled the revenue beat.

Robinhood’s got big plans for crypto, including adding more tokens, strengthening its wallet offering, and exploring tokenization long-term.

Analysts are optimistic, but warn of volatility. Bernstein, however, remains bullish, expecting continued crypto momentum in Q1.

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2025-02-13 15:16