Robinhood Stock Is Soaring Thursday: What's Going On?

Robinhood Markets Inc HOOD shares are trading higher Thursday after the company reported better-than-expected financial results for the fourth quarter. Multiple analysts also lifted price targets following the print.

• Q4 Revenue: $1.01 billion, versus estimates of $944.62 million

• Q4 EPS: $1.01, versus estimates of 42 cents

Total revenue was up 115% year-over-year. Transaction-based revenue totaled $672 million in the quarter, up more than 200% on a year-over-year basis. Equities revenue was up 144% year-over-year, options revenue climbed 83% and crypto revenue soared more than 700%.

Robinhood said net deposits hit a record of $16.1 billion in the fourth quarter. Funded customers increased 8% year-over-year to 25.2 million as investment accounts grew 10%. Assets under custody increased 88% year-over-year to $193 billion. Average revenue per user was up 102% year-over-year to $164.

Robinhood said it repurchased $160 million of its common stock in the fourth quarter. The company ended the period with $4.3 billion in cash and cash equivalents.

“We hit the gas on product development in 2024 with a new platform for active traders, Gold Card launch, an expanded UK and EU product suite, and much more,” said Vlad Tenev, co-founder and CEO of Robinhood. 

“We see a huge opportunity ahead of us as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”

Robinhood’s 2025 expense plan includes growth investments in new products, features, international expansion and greater efficiency in its existing business. The company expects combined adjusted operating expenses and stock-based compensation for full year 2025 to be between $2 billion and $2.1 billion. 

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Analyst Changes:

• Morgan Stanley analyst Michael Cyprys maintained Robinhood with an Overweight and raised the price target from $64 to $90.

• Barclays analyst Benjamin Budish maintained Robinhood with an Overweight and raised the price target from $54 to $76.

• Needham analyst John Todaro maintained Robinhood with a Buy and raised the price target from $52 to $70.

HOOD Price Action: Robinhood shares were up 13.4% at $63.41 at the time of publication Thursday, according to Benzinga Pro.

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