Latest news with #RobinhoodGold
Yahoo
21-05-2025
- Business
- Yahoo
Robinhood Gold seen as Amazon Prime of ebrokers
-- Robinhood's premium membership program, Robinhood (NASDAQ:HOOD) Gold, has been compared to Amazon (NASDAQ:AMZN) Prime as it rapidly expands and reshapes the online brokerage landscape, according to Mizuho analysts. 'We recently hosted Chris Koegel, VP Corporate Finance and IR at Robinhood,' Mizuho wrote. 'Management is particularly excited about Robinhood Gold, which is inspired by Amazon Prime.' The firm notes that the subscription, priced at $5 per month, now boasts 3.3 million subscribers—up from around 1 million in mid-2023—and has reached a $200 million annual revenue run rate. Mizuho said that Gold members show significantly higher engagement and value. 'The average Gold customer has ~$40K AUM, multiples of that of the average customer,' Mizuho wrote. Additionally, Gold users are said to generate roughly five times the average revenue per user. Among Gold's key features are an AI-powered market analysis tool, a robo-advisor for portfolio creation, and a credit card with a 3% cash match on purchases. That card is said to already have 200,000 users and a 3 million-person waitlist. 'Management sees a path to profitability' for the card, Mizuho added. The firm highlights that Robinhood is targeting further growth through tiered crypto pricing aimed at high-volume traders, a potential $5 billion opportunity in crypto staking, and expansion into prediction markets via its partnership with Kalshi. Upcoming banking features, including checking and savings accounts, are expected by the third quarter. Calling the Gold program 'intentionally disruptively priced,' Mizuho highlighted a flat $250 annual fee cap regardless of portfolio size. They state that management remains focused on three strategic goals: winning active traders, growing wallet share among Millennials and Gen Z, and expanding internationally in markets such as the U.K., EU, Singapore, and Canada. Related articles Robinhood Gold seen as Amazon Prime of ebrokers - Mizuho Apple stock falls amid OpenAI's acquisition of Jony Ive's startup Microsoft Build Conference: Analysts weigh in Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
30-04-2025
- Business
- CNA
Robinhood tops quarterly profit estimates as volatility fuels trading volumes surge
Retail trading platform Robinhood's first-quarter profit more than doubled and beat analysts' estimates on Wednesday, driven by a surge in trading volumes from clients looking to hedge their positions amid choppy markets. The company's transaction-based revenue, or income generated from fees for facilitating trading in options, cryptocurrency and equities, jumped 77 per cent in the quarter. Majority of the gains came from a 100 per cent jump in crypto trading activity as bitcoin remained choppy during the quarter. U.S. President Donald Trump's erratic trade policy had triggered volatility across asset classes during the first three months of the year, benefiting platforms such as Robinhood by boosting trading activity. "We're diversifying the business outside of crypto, which will make us less reliant on crypto transaction volumes in the future," CEO Vladimir Tenev said in a call. Revenue from options trading climbed 56 per cent and from equities surged 44 per cent in the quarter. Net interest revenue, the bulk of which comes from margin investing, jumped 14 per cent to $290 million. Total platform assets jumped 70 per cent over last year to $221 billion, with record net deposits of $18 billion. "Customers are not only trading more with us, but they're entrusting us with more of their assets," Tenev added. Net income attributable to common stockholders came in at $336 million, or 37 cents per share, in the three months ended March 31. That compares with a profit of $157 million, or 18 cents per share, a year earlier. Analysts had expected a profit of 33 cents per share, according to data compiled by LSEG. Total net revenue of the company, which has announced the rolling out of wealth management and private banking services, climbed 50 per cent to $927 million. Robinhood Gold - its premium services membership program - subscribers nearly doubled to 3.2 million. The Menlo Park, California-based company's shares, which have gained nearly 32 per cent in 2025, were last up 1.5 per cent in choppy trading after the bell.
NBC News
28-03-2025
- Business
- NBC News
Robinhood CEO sees Amazon-like subscription model as path to 'loyalty' in financial services
Robinhood CEO Vlad Tenev is betting that by rolling out a large enough portfolio of digital investment products, more consumers will be willing to pay a monthly subscription for its product suite. Subscribers to Robinhood Gold pay $5 a month or $50 a year for perks like 4% interest on uninvested cash, access to professional research, and no interest on the first $1,000 of margin borrowed. Now the company is adding wealth management features called Robinhood Strategies, which offers curated access to exchange-traded fund portfolios and mixes of handpicked stocks. The service, available to Gold Subscribers, carries a 0.25% annual management fee, capped at $250. Robinhood also said this week that with its new Robinhood Banking offering, Gold subscribers will get private banking services with tax advice and estate planning tools, perks like access to private jet travel, five-star hotels and tickets to Coachella, and 4% interest on savings accounts. Customers will also soon be able to get cash delivered to their doorstep, saving them a trip to the ATM, though few details were provided. Tenev told CNBC in an interview that Robinhood's subscription service could be similar to what users get from Amazon Prime or Costco membership, where their monthly fee feels justified by the quality and quantity of the perks, which keep them coming back. 'My philosophy behind it is subscriptions are about loyalty,' Tenev said. 'So if you're a subscriber to something, then that service is sort of the first in mind when you think about trying something else from that category.' Tenev said that in financial services, loyalty is particularly important because it's 'equivalent to wallet share.' Tenev said the number of subscribers increased from about 1.5 million a year ago to 3.2 million today, adding that it's a 'nine-figure business,' meaning at least $100 million in annual revenue. Robinhood grew in popularity among younger investors by making it easy to buy and hold fractional shares in companies using a simple mobile app, and then moving into crypto. Tenev said on Thursday that over the longer term, Robinhood wants to be 'the place where you can buy, sell, trade, hold any financial asset, conduct any financial transaction.' Robinhood shares are up 19% this year after almost tripling in 2024, when crypto prices soared.
Globe and Mail
18-02-2025
- Business
- Globe and Mail
Should You Buy Robinhood While It's Below $80?
Robinhood (NASDAQ: HOOD) is perhaps best known for its role in the meme stock frenzy a few years ago. After facing significant scrutiny from investors and regulators, the company has transformed its platform, delivering impressive growth in the process. Over the past year, Robinhood's stock has surged 381% as management incorporates a number of initiatives to attract more cash to its trading platform. As trading activity soared alongside growing assets, the company capped off last year with record-breaking earnings. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » With the stock climbing sharply, is it time to invest in Robinhood, or is it too late? Here's everything you need to know to decide if Robinhood stock is right for your portfolio. Robinhood had a record year for earnings in 2024 Robinhood has navigated several challenges in recent years, from its role in the meme-stock phenomenon to its payment-for-order-flow business model. While the company has attracted scrutiny from both investors and regulators, the past year marked a significant transformation for the company as it evolved from a gamified trading app to a full financial services provider. One concern I had regarding Robinhood last year was its seemingly plateaued growth in customer assets. However, it has done an excellent job in attracting customers, with its annual percentage yield (APY) of as high as 5% last year. Robinhood's Gold subscription service, which charges customers a $5 monthly fee, is one way it rewards its members with higher interest rates. Last year, the company finished the year with 2.64 million Gold subscribers, marking an impressive 86% growth year over year and a 21% increase from the preceding quarter. This subscription provides it with a steady revenue stream. However, a bigger benefit is that these users are significantly more engaged on Robinhood's platform. For example, Gold subscribers hold six times more assets under custody (AUC) compared to regular users and are four times more likely to utilize Robinhood's retirement account services. Robinhood has introduced retirement accounts tailored for independent workers, including traditional and Roth IRAs. To accumulate more assets, the company offers matching contributions of 1% for all customers and up to 3% for those with Robinhood Gold. Robinhood's initiatives are paying off big time. The company finished the year with an AUC of $193 billion, a significant increase from $103 billion a year earlier. In the fourth quarter alone, net deposits soared by a record $16.1 billion. In addition, Robinhood benefited from high trading volume across equities, options, and cryptocurrencies. Cryptocurrency trading surged by an astounding 455% yearly, driven by optimism following Donald Trump's election victory and the potential for more crypto-friendly policies. This translated into a record year for the company, which raked in $2.95 billion in net revenue, or a 58% growth from one year ago. The company also controlled expenses and posted a $1.4 billion profit, its first full-year generally accepted accounting principles (GAAP) profit as a publicly traded company. HOOD Revenue (Quarterly) data by YCharts What's next for Robinhood Robinhood plans to continue revamping its platform with Robinhood Legend, its desktop offering designed to cater to active traders. This platform provides added tools and aims to attract and retain more active traders. The company is also expanding its financial instruments to include index options (which have certain tax benefits) and futures, giving it further avenues for future growth. It is also looking to offer its customers event contracts (also known as prediction markets), where they can bet on outcomes from the Presidential election to sporting events. The company rolled out contracts related to the Super Bowl, but only for one day before the U.S. Commodity Futures Trading Commission (CFTC) requested them to take it down. During the company's recent earnings call, Robinhood CEO Vlad Tenev said, "I think prediction markets are the future. I think they're the future not just as an active trading asset, but also news and information. And Robinhood's going to be right there leading the way." In a press release, the company said it "will continue to collaborate with the CFTC as we work to roll out a more comprehensive event contracts platform later this year." Is it a buy? Robinhood had an excellent year last year and is growing its assets under custody at a very nice pace. The company has turned a GAAP profit in four consecutive quarters in a row, and its strategy appears to be paying off. Investors considering a position in Robinhood must weigh the valuation and its future growth prospects. Robinhood appears expensive at 38 times this year's projected earnings, especially for conservative investors seeking steady returns. However, if you can stomach the volatility, Robinhood has gotten back on track, and I'm optimistic about its future growth trajectory. The fintech has done a good job getting more from its customers and continues upgrading to attract more traders and investors to its platform. Therefore, I think it's a solid buy for growth-focused investors today. Should you invest $1,000 in Robinhood Markets right now? Before you buy stock in Robinhood Markets, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn't one of them. 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