Here’s Why Robinhood (HOOD) Stock Price Soars 15% Today

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Here's Why Robinhood (HOOD) Stock Soars 15% Today

Highlights

  • Robinhood (HOOD) stock skyshots 15% in the early US trading hours today
  • Robinhood Markets unveils Q4 earnings driving market positivity around its stock.
  • The company showcased phenomenal growth, with Q4 revenues hitting a record $1B.

Robinhood (HOOD) stock price witnessed a remarkable 15% upshot on Thursday, primarily reflecting soaring market optimism in light of Robinhood Markets’ bullish Q4 2024 earnings. Intriguingly, the trading platform boasted outstanding results in sectors such as revenues, net deposits, subscribers, and net income, among other stats that appear to have uplifted market sentiment for its shares.

Here’s a brief overview of the vital factors that appear to be driving the current stock price surge.

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Robinhood (HOOD) Stock Soars Amid Q4 Earnings

Notably, Robinhood’s Q4 2024 earnings results released on February 12 ignited a positive market sentiment for its stock, underscoring phenomenal growth.

  • Q4 revenues were up by 115% YoY, reaching a record $1.01 billion.
  • Q4 net deposits grew to a record $16 billion.
  • Q4 Gold subscribers were up by 86% YoY to a record 2.6 million.
  • Q4 net income was up over 10x YoY to a record $916 million, or Diluted EPS (earnings per share) of a record $1.01, which is much higher compared to $30 million, or diluted EPS of $0.03, in Q4 2023.

Overall, the earnings results showcased phenomenal growth for the trading firm over the past year, projecting bullishness on HOOD stock price.

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Crypto Market Growth Boosts Momentum?

Simultaneously, it’s worth considering that the trading platform’s remarkable Q4 revenue is primarily driven by the crypto market’s growth. In light of bullish events such as BTC halving, ETF launches, and increased retail and institutional participation in crypto last year, Robinhood’s transaction-based revenue increased over 200% year-over-year to $672 million, which was primarily driven by cryptocurrency revenue of $358 million, up 700%.

Further, net interest revenues increased by 25% YoY to $296 million. Other revenues increased by 31% YoY. Altogether, this broader surge, aiding the firm’s record Q4 2024 revenue of $1 billion, is thereby fueled by the broader market growth and developments over the past year.

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Trading Platform Continues Tapping Into Global Markets

Simultaneously, the trading platform’s constant efforts to expand its offerings globally have further aided the HOOD stock price surge. CoinGape recently reported that Robinhood Crypto launched services in Spain, which is in sync with the EU’s MiCA regulations. This mover enhances the firm’s global visibility, thereby attracting investors from various regions.

The trading company also partnered with the CME Group recently, offering services in the U.S. The collaboration facilitated the rolling out of future contracts on Robinhood, giving U.S. retail traders access to cryptocurrency and other asset classes.

How Is HOOD Stock Performing?

At the time of reporting, HOOD stock price surged roughly 15%, as per pre-market data on Nasdaq, and exchanged hands at $63.43. The pre-market high and low were registered as $64.99 and $62.21, respectively.

Notably, the YTD chart indicated gains worth 42%, falling in line with the company’s phenomenal Q4 earnings results. Traders and investors continue to eye the stock for further gains amid strong platform growth over the year.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.