Robinhood beats profit estimates as post-election trading frenzy lifts volumes

Published On Feb 12, 2025, 4:09 PM

Robinhood reported a remarkable increase in profits for the fourth quarter, surpassing analysts' expectations significantly. Driven by a surge in trading activity linked to Donald Trump's return to the presidency, the company's transaction revenue jumped 236% year-over-year, primarily due to a 700% increase in crypto trading. Adjusted earnings rose to $1.01 per share compared to the expected 44 cents, while assets under custody increased by 88% to $193 billion.

Stock Forecasts

HOOD

Positive

The impressive profit figures and the growth in trading activity suggest that Robinhood is well-positioned to continue benefiting from the current market trends, especially in the crypto space. Investors may find this momentum appealing as cryptocurrencies gain an increasing share of trading activity on the platform. Positive market sentiment towards the company's innovative approach to trading could further bolster its stock performance.

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