{"id":835377,"date":"2025-03-20T08:13:03","date_gmt":"2025-03-20T13:13:03","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/20\/robinhood-receives-buy-rating-as-crypto-revenue-surges-700-in-q4\/"},"modified":"2025-03-20T08:13:03","modified_gmt":"2025-03-20T13:13:03","slug":"robinhood-receives-buy-rating-as-crypto-revenue-surges-700-in-q4","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/20\/robinhood-receives-buy-rating-as-crypto-revenue-surges-700-in-q4\/","title":{"rendered":"Robinhood Receives \u2018Buy\u2019 Rating as Crypto Revenue Surges 700% in Q4"},"content":{"rendered":"<article id=\"post-116608\">\n<div>\n<h2>TLDR<\/h2>\n<ul>\n<li>Robinhood received a \u2018Buy\u2019 rating from Compass Point with a $61 price target, citing growth potential in crypto business<\/li>\n<li>Robinhood\u2019s Q4 crypto revenue surged 700% to $358 million, accounting for one-third of transaction revenue<\/li>\n<li>The company has potential to generate $665 million from cross-selling to existing customers, including $150 million from staking<\/li>\n<li>Analysts note a more crypto-friendly regulatory environment with the Trump administration<\/li>\n<li>HOOD stock has an average upside potential of 78.3% according to analysts, with a consensus \u201cModerate Buy\u201d rating<\/li>\n<\/ul>\n<hr>\n<p>Robinhood Markets Inc. (NASDAQ:HOOD) is experiencing a resurgence in its cryptocurrency business, helping the popular trading platform achieve record profitability as digital asset trading volumes rebound. The company, which has become a favorite among millennial investors, is attracting increased attention from Wall Street as analysts see room for expansion in its crypto offerings.<\/p>\n<p>Investment bank Compass Point has initiated coverage of Robinhood with a \u201cBuy\u201d rating and set a price target of $61. This represents a 50% upside from the company\u2019s current trading price. Analysts highlighted increased average revenue from Robinhood\u2019s 12 million crypto users alongside an improving U.S. regulatory environment.<\/p>\n<p>Compass Point analysts believe Robinhood has an opportunity to generate $665 million from cross-selling to existing U.S. customers. This includes the potential to generate $150 million \u201cfrom staking alone,\u201d according to their research note published on Wednesday.<\/p>\n<p>The bank noted that \u201cHOOD\u2019s crypto business has underearned for its size after taking a cautious approach to U.S. product expansion.\u201d They pointed out that the company\u2019s crypto revenue was \u201cjust 19% of exchange giant Coinbase\u2019s non-interest revenue,\u201d suggesting room for growth.<\/p>\n<p>After developing extensive infrastructure for non-U.S. users, Compass analysts believe Robinhood \u201ccan launch additional crypto services in the U.S. with limited additional investment.\u201d This expansion potential is a key factor in their bullish outlook on the stock.<\/p>\n<p>Robinhood has already seen the benefits of increased crypto trading activity. In the fourth quarter, cryptocurrency trading revenue skyrocketed 700% to $358 million, up from $45 million a year earlier. This surge accounted for more than one-third of Robinhood\u2019s total transaction-based revenue, which rose over 200% to $672 million.<\/p>\n<p>The crypto trading boom pushed Robinhood\u2019s total Q4 revenue up 115% year-over-year to $1.01 billion. Net income soared more than tenfold during the same period. These results demonstrate how crypto has become a major driver of the company\u2019s financial performance.<\/p>\n<p>In February, the U.S. Securities and Exchange Commission said it was closing an investigation into Robinhood\u2019s crypto arm without seeking enforcement action. This regulatory clarity has removed a cloud of uncertainty that had been hanging over the company\u2019s digital asset business.<\/p>\n<h3>Robinhood\u2019s Diversification Strategy<\/h3>\n<p>The bullish stance on Robinhood comes amid traditional finance\u2019s surging interest in digital assets. Earlier this week, broker Bernstein started covering Coinbase, setting a nearly 70% upside on the stock. Bernstein cited a more crypto-friendly environment with the election of U.S. President Donald Trump as a key factor.<\/p>\n<p>Deutsche Bank analyst Brian Bedell sees Robinhood as a \u201cgood buying opportunity\u201d and has maintained a \u201cBuy\u201d rating on the stock. Bedell noted that the company has been witnessing robust trading momentum, mainly in equities and options. Crypto notional volumes rose over 400% year-over-year, reaching $71 billion in Q4 2024.<\/p>\n<p>BofA Securities remains optimistic about Robinhood\u2019s stock as well, maintaining a \u201cBuy\u201d rating and a price objective of $65.00. The firm noted the platform\u2019s higher retail engagement and strong organic growth. The company has strong growth potential in both the self-directed retail and cryptocurrency sectors globally.<\/p>\n<p>Robinhood closed up more than 6% to trade just over $42 per share on Wednesday amid wider gains in crypto stocks and other risk-on assets. The stock has an average upside potential of approximately 78.3% according to analyst estimates.<\/p>\n<p>The company has recently expanded its product offerings beyond traditional stock trading. Earlier this week, Robinhood launched a prediction market that will allow users to bet on this year\u2019s NCAA basketball tournament, called March Madness. This move represents the company\u2019s efforts to diversify its revenue streams.<\/p>\n<p>Artisan Partners, an investment management company, noted in its Q4 2024 investor letter that \u201cRobinhood has emerged as the go-to-trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab\u2019s 34 million).\u201d The firm believes that as Robinhood\u2019s customer base matures and accumulates wealth, the company is well positioned to expand its product offerings.<\/p>\n<p>Based on data from MarketBeat, Robinhood stock has a consensus rating of \u201cModerate Buy\u201d and an average price target of $61.29. Five analysts have rated the stock with a hold rating, while thirteen have given it a buy rating.<\/p>\n<p>The company currently has a market capitalization of $37.90 billion, with a price-to-earnings ratio of 27.26. Robinhood\u2019s stock has shown strong performance, with a 50-day moving average price of $48.86 and a 200-day moving average price of $36.90.<\/p>\n<p>Robinhood operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. The company offers features such as fractional trading, recurring investments, fully-paid securities lending, margin investing, and instant withdrawals.<\/p>\n<div>\n<p><a href=\"http:\/\/blockonomi.com\/out\/bcbot\" alt=\"BC.Game Casino\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/blockonomi.com\/wp-content\/uploads\/2024\/05\/bc-wide.gif\"><\/a><\/p>\n<\/div><\/div>\n<p><a href=\"https:\/\/blockonomi.com\/robinhood-receives-buy-rating-as-crypto-revenue-surges-700-in-q4\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Maisie Morrison<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TLDR Robinhood received a \u2018Buy\u2019 rating from Compass Point with a $61 price target, citing growth potential in crypto business Robinhood\u2019s Q4 crypto revenue surged 700% to $358 million, accounting for one-third of transaction revenue The company has potential to generate $665 million from cross-selling to existing customers, including $150 million from staking Analysts note<\/p>\n","protected":false},"author":1,"featured_media":835378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1839,22144],"tags":[],"class_list":{"0":"post-835377","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-receives","8":"category-robinhood"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/835377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=835377"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/835377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/835378"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=835377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=835377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=835377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}