Robinhood (HOOD) Hit’s $40 as Year of Growth Continues

Robinhood's stock (NASDAQ:HOOD) has been on an amazing run through 2024, with gains of 215% YTD bringing a new 52 week, and multi-year high in trading today. The stock surpassed the $40 level for the first time since the early IPO days back in 2021, as momentum in Robinhood continues to build. At the time of writing, the stock has given up a little of the gains on the day to sit at $39.17, up 1.37% on the day.

This continued surge you can see in the chart below reflects in part the company's recent strategic successes combined with a wave of bullish sentiment. As a major player in the financial technology sector, Robinhood's current market capitalization has now grown to $34.6 billion.

Part of Robinhood's growth strategy includes acquisitions to enhance its service offerings. The recent acquisition of TradePMR for $300 million added $40 billion in assets and over 1,000 Registered Investment Advisors to Robinhood's portfolio, broadening its service capabilities and market reach.

Analysts have responded positively to Robinhood's performance, with Morgan Stanley upgrading the stock to Overweight and Needham moving it from Hold to Buy. Barclays maintained its Equalweight rating, whereas Piper Sandler adjusted its price targets upwards, reflecting the growing optimism around Robinhood's market position.

The company's Price-to-Earnings (P/E) ratio stands at 66.9, with a revenue growth rate of 35.74% over the last twelve months. This revenue growth was further affirmed with the recent Q3 2024 financial results, which reported a 36% increase year-over-year, reaching $637 million. Moreover, adjusted EBITDA almost doubled, amounting to $268 million, showcasing the company's operational efficiency.

The introduction of new trading products such as Index Options, Futures, and their desktop platform, Robinhood Legend, has also contributed to the recent stock surge by broadening the company's product suite and attracting a wider array of investors.