Robinhood romps before earnings numbers land
Shares of Robinhood are surging ahead of its earnings report after the close of trading Wednesday. The stock is flirting with some of its highest levels since August 2021, when it debuted as a publicly traded company. (It closed at an all-time high of $70.39 on August 4, 2021.)
Analysts are expecting big things from the report, with total revenues thought to have topped previous levels seen during the meme-stock mania of early 2021.
But Barron’s notes in its earnings preview that a key to the stock’s performance over the last year has been a surge in crypto activity:
“Cryptocurrency was a catalyst for Robinhood’s stock last year, and could be again in 2025, given President Donald Trump’s desire to loosen crypto regulations and boost investor demand for digital assets more generally. Last month, acting SEC Chairman Mark Uyeda unveiled the formation of a task force to study cryptocurrencies and chart a ‘sensible regulatory path that respects the bounds of the law.’”
In fact, detailed estimates of expected transaction revenues collected by FactSet show that analysts expect crypto-related revenues to have trounced both options and equity trading during the quarter for the first time.
(Full disclosure: Sherwood Media is an editorially independent subsidiary of Robinhood Markets Inc. I own Robinhood stock as part of my compensation.)
Analysts are expecting big things from the report, with total revenues thought to have topped previous levels seen during the meme-stock mania of early 2021.
But Barron’s notes in its earnings preview that a key to the stock’s performance over the last year has been a surge in crypto activity:
“Cryptocurrency was a catalyst for Robinhood’s stock last year, and could be again in 2025, given President Donald Trump’s desire to loosen crypto regulations and boost investor demand for digital assets more generally. Last month, acting SEC Chairman Mark Uyeda unveiled the formation of a task force to study cryptocurrencies and chart a ‘sensible regulatory path that respects the bounds of the law.’”
In fact, detailed estimates of expected transaction revenues collected by FactSet show that analysts expect crypto-related revenues to have trounced both options and equity trading during the quarter for the first time.
(Full disclosure: Sherwood Media is an editorially independent subsidiary of Robinhood Markets Inc. I own Robinhood stock as part of my compensation.)
