Robinhood Stock Soars 15% on Q4 Earnings
Robinhood (HOOD) stock experienced a significant 15% increase on Thursday, fueled by strong Q4 2024 earnings results and positive market sentiment. The trading platform reported impressive growth across key metrics, including revenue, net deposits, subscribers, and net income.
Strong Q4 2024 Earnings Drive Robinhood Stock Surge
Robinhood's Q4 2024 earnings report, released on February 12, revealed substantial growth:
- Revenue: Increased by 115% year-over-year (YoY) to $1.01 billion.
- Net Deposits: Reached a record $16 billion.
- Gold Subscribers: Grew by 86% YoY to 2.6 million.
- Net Income: Increased more than 10x YoY to $916 million (Diluted EPS of $1.01 compared to $0.03 in Q4 2023).
These results showcase the company's significant progress and contributed to the positive market outlook for HOOD stock.
Crypto Market Growth Fuels Robinhood's Revenue
A key driver of Robinhood's Q4 revenue was the growth of the cryptocurrency market. Factors like the Bitcoin halving, ETF launches, and increased retail and institutional participation boosted cryptocurrency trading. Transaction-based revenue jumped over 200% YoY to $672 million, with cryptocurrency revenue accounting for $358 million (a 700% increase).
Net interest revenue also contributed, rising 25% YoY to $296 million, with other revenue sources increasing by 31% YoY. This overall growth fueled the company's record-breaking $1 billion Q4 revenue.
Global Expansion Strategy Strengthens Robinhood's Position
Robinhood's strategic global expansion also played a role in the stock price surge. The launch of Robinhood Crypto services in Spain, compliant with EU MiCA regulations, enhanced the company's international presence and attracted investors. Furthermore, a partnership with CME Group allows US retail traders to access cryptocurrency futures contracts on the Robinhood platform.
HOOD Stock Performance
At the time of writing, HOOD stock was up approximately 15% in pre-market trading on Nasdaq, trading at $63.43. The pre-market high and low were $64.99 and $62.21, respectively. The year-to-date (YTD) performance shows a gain of 42%.
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