Robinhood Markets Stock Is Ripping Higher Wednesday: What's Going On?

Robinhood Markets Inc HOOD shares are trading higher Wednesday after the company reported strong quarterly results that included a surprise profit.

What Happened: Robinhood’s fourth-quarter revenue increased 24% year-over-year to $471 million, which beat the consensus estimate of $456.81 million, according to Benzinga Pro. The company said its top-line results were driven by higher net interest, transaction-based and other revenues.

Robinhood reported earnings of 3 cents per share, which beat estimates for a loss of 1 cent per share.

Transaction-based revenues were up 8% in the quarter to $200 million. Cryptocurrency revenue increased 10% year-over-year to $43 million. Equities revenue increased 19% to $25 million. Options revenue came in at $121 million, down 2% year-over-year.

On the conference call, Robinhood said it was seeing strong interest in Bitcoin BTC/USD ETFs and noted that they accounted for about 5% of overall crypto trading activity.

Gold subscribers increased 25% year-over-year to 1.42 million. Monthly active users decreased 4% year-over-year to 10.9 million. The company ended the quarter with 23.4 million net cumulative funded accounts.

Check This Out: Robinhood Q4 Earnings Highlights: Revenue Beat, EPS Beat, Strong Start To Q1 And More

“2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally,” said Vlad Tenev, co-founder and CEO of Robinhood. 

“And we’re off to an even better start in 2024, as we’ve already brought in more Funded Customers and Net Deposits through the first half of Q1 than we did in all of Q4 2023.”

Robinhood expects total operating expenses, adjusted operating expenses and SBC to be in between $1.85 billion and $1.95 billion for full-year 2024.

The company said it plans to make growth investments in new products, features and international expansion in 2024, while also focusing on efficiency.

Following the print, Keybanc analyst Josh Beck maintained Robinhood with an Overweight rating and raised the price target from $14 to $15.

HOOD Price Action: Robinhood shares were up 14.6% at $13.60 at the time of publication, according to Benzinga Pro.

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