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Robinhood app on telephone by Andrew Neel through Unsplash
Robinhood Markets (HOOD) has been hovering to new highs this yr and has quietly change into one of many market’s standout performers in 2025. The favored buying and selling platform’s rally has been pushed by an ideal storm of crypto resurgence, increasing monetary merchandise, and new crypto packages. In actual fact, its newest transfer of providing tokenized variations of over 200 U.S. securities to European customers — together with exchange-traded funds (ETFs) and even high-profile personal corporations like SpaceX — has drawn explicit consideration.
This marks the primary time Robinhood has opened the door to tokenized personal firms, made doable by the European Union’s extra versatile investor rules. As Robinhood’s product suite expands, so too have its earnings, signaling robust scalability in its enterprise mannequin. After notching a contemporary excessive of $106.64 on July 17, HOOD inventory nonetheless has momentum working in its favor. So, with shares hitting new heights, how ought to traders assess the chance from right here?
Robinhood shook up the monetary world by pioneering commission-free buying and selling and opening the doorways of the market to a brand new wave of on a regular basis traders. The platform now affords buying and selling throughout shares, choices, futures, and crypto, together with retirement investing and premium options via Robinhood Gold. Designed with fashionable traders in thoughts, Robinhood continues to evolve alongside a brand new technology of market individuals.
Valued at a market capitalization of round $91 billion, Robinhood’s inventory has been on an absolute tear in 2025, even after going through setbacks corresponding to lacking out on a spot within the prestigious S&P 500 Index ($SPX) final month. To date this yr, HOOD inventory is up a shocking 183%, leaving the S&P 500’s 7% year-to-date (YTD) return within the mud.
Zooming out, the longer-term beneficial properties are much more eye-popping. Over the previous yr, the inventory has had a monster rally of 336%, whereas the broader market has inched up simply 13%. Regardless of just a few bumps alongside the way in which, HOOD has clearly struck a robust chord with traders.
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Robinhood’s red-hot rally in 2025 has definitely caught Wall Road’s consideration, however such explosive beneficial properties don’t come low cost. The inventory is at present buying and selling at a sky-high 77 occasions ahead earnings, a pointy distinction to the sector median.
Robinhood dropped its fiscal 2025 first-quarter earnings report on April 30, which blew previous Wall Road’s top- and bottom-line expectations. Income for the quarter soared a powerful 50% year-over-year (YOY) to $927 million, forward of the Road’s forecast determine of $915.7 million. A key driver of this surge was transaction-based income, which soared 77% YOY to $583 million, primarily pushed by robust income progress throughout cryptocurrencies, choices and equities.
Digging additional, cryptocurrency income led the pack, skyrocketing 100% YOY to $252 million as digital asset curiosity reignited. Choices weren’t far behind, producing $240 million in income, up 56% yearly. In the meantime, equities introduced in $56 million in income, marking a strong 44% improve. These robust numbers underscore Robinhood’s momentum as customers remained lively throughout a number of asset lessons.
Robinhood additionally noticed spectacular beneficial properties in different areas. Different revenues climbed 54% to $54 million, pushed by a pointy rise in Robinhood Gold subscriptions. Robinhood Gold is gaining severe traction, with subscriptions hovering a shocking 90% YOY to three.2 million. The momentum carried via to the underside line, too. EPS jumped a outstanding 106% to $0.37, crushing expectations by a robust 19.4% margin.
The corporate additionally made a daring transfer to reward shareholders, rising its current share repurchase program from $1 billion to $1.5 billion. The expanded buyback indicators administration’s robust confidence within the firm’s monetary well being and long-term progress potential. As Robinhood prepares to unveil its second-quarter outcomes after the market closes on July 30, analysts are eyeing one other robust displaying, forecasting a 48% surge in revenue YOY to $0.31 per share.
Over the lengthy haul, analysts count on Robinhood’s earnings progress story to remain firmly intact. Projections name for earnings to rise practically 20% yearly to $1.31 per share in fiscal 2025, adopted by an excellent stronger 28% leap to $1.68 per share in fiscal 2026.
General, Wall Road is displaying regular confidence in Robinhood, with HOOD inventory holding a consensus ranking of “Average Purchase” as analysts keep optimistic about its future potential. Of the 21 analysts overlaying HOOD, 12 suggest a “Robust Purchase” ranking, two give a “Average Purchase,” six counsel a “Maintain,” and just one analyst advocates for a “Robust Promote” ranking. The inventory is already buying and selling at a premium to its common value goal of $89.89. Nonetheless, the Road-high goal of $125 means that Robinhood inventory can nonetheless rally as a lot as 19% from right here.
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Robinhood’s standout yr in 2025 and its climb to new highs present simply how rapidly the buying and selling platform is evolving and discovering new methods to develop. With robust earnings, increasing product choices, and an even bigger concentrate on rewarding shareholders, the platform continues to construct momentum. That stated, its efficiency continues to be intently tied to crypto tendencies and broader market momentum, which implies some ups and downs are to be anticipated. For long-term traders, although, Robinhood stays an thrilling story — one which’s nonetheless unfolding with loads of potential forward.
On the date of publication, Anushka Mukherji didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially printed on Barchart.com
