The cost of Robinhood shares on Thursday, March 14, showed growth of nearly 9% after the company reported a significant increase in assets under custody over the past month.
The mentioned firm is currently showing a steady growth trend. To a large extent, the specified dynamic is the result of the company’s return to trading cryptocurrencies and securities.
Assets in custody in February showed an increase of 16% compared to January. In monetary terms, the mentioned figure is $118.7 billion. For the second month in a row, Robinhood manages to break the $100 billion mark.
The company, based in Menlo Park, California, stated that its revenues for the fourth fiscal quarter ended December 31, 2023, amounted to $102.6 billion. This is the highest figure since the frenzied trading of meme shares in 2021.
Bernstein experts on Thursday announced expectations that Robinhood’s income from cryptocurrencies will grow nine times in 2025. They also noted that offering a full suite of digital currencies within a regulated brokerage platform is in a sweet spot.
Bernstein experts expect the total market value of the cryptocurrency industry to reach $7.5 trillion in 2025. Currently, the corresponding figure is about $2.6 trillion. Bernstein representatives also noted that Robinhood has an advantage over other crypto exchanges such as Coinbase due to competitive fees. Moreover, in this context, they noted that traditional brokers tend to refrain from offering cryptocurrency trading services.
In mid-February, Robinhood reported an unexpected quarterly profit. Against the background of the positive result, the company announced its intention to ensure profitable growth in the current year.
Robinhood has become a beneficiary of the increased activity of retail traders, who make up the bulk of its customer base. In this case, a significant factor influencing the company’s results was the rise in the price of bitcoin, which surpassed the record of 2021, exceeding the mark of $73,000. The S&P 500 has posted a series of impressive highs this year.
Last year, Robinhood countered the negative trend of decreasing the number of active users on its platform. At the same time, the company managed to increase revenue per customer in 2024.
The monthly number of active Robinhood users in the last quarter of 2023 was about 50% below the peak in 2021. In recent years, the company has faced a flow of criticism for its actions during the stock mania meme period. In this case, there were claims about the gamification of transactions with real money, especially in option trades with high-risk options.
On Thursday, Robinhood’s share price reached a new 2-year high but continues to be well below the July 2021 IPO price of $38. Currently, the mentioned figure is more than 50% below the peak figure.
Robinhood, an American financial services company, was founded in April 2013 by Vladimir Tenev and Baiju Bhatt. As of December last year, the company had 23.4 million funded accounts and 10.9 million monthly active users. Against the background of the above-mentioned unexpected profit, the specified indicators may increase in the current year.
As we have reported earlier, Robinhood Targets New Products.
