Latest news with #RobinhoodStrategies'
Globe and Mail
31-03-2025
- Business
- Globe and Mail
Should You Buy, Sell, or Hold HOOD Stock as Robinhood Gets Into Wealth Management and Banking?
Robinhood Markets (HOOD) is a digital financial services firm based in the U.S. that allows its users to invest in stocks, options, exchange-traded funds (ETFs), and cryptocurrencies. Incorporated in 2013, the company now has a user base of 25.2 million funded accounts. Robinhood's stock has seen tremendous growth in the last couple of years. Shares are up 370% over the past two years, up more than 104% over the past 52 weeks, and up 10.3% in the year to date. However, shares have not been immune from the broader market selloff, and are down nearly 40% from their 52-week high. Robinhood Beats Analysts Robinhood reported its fourth-quarter results last month on Feb. 12 posting a net profit of $916 million, a 10X increase from the same quarter last year. This translates to a profit of $1.01 per diluted share, coming in against analysts' estimates of $0.44 per share. Revenue for the quarter totaled$1.01 billion, up 115% year-over-year while beating the $941.4 million estimate. For fintech companies like Robinhood, metrics like average revenue per user (ARPU) are critical. Robinhood doubled its ARPU in the quarter to $164. Robinhood Expands to Wealth Management and Banking Robinhood announced on Wednesday, March 26 its entry into the wealth management and banking industry. Its wealth management branch will be called 'Robinhood Strategies' and will cost users a 0.25% annual charge with a ceiling of $250 for its 'Gold' members. Robinhood management sees the move as a chance to 'democratize' personalized wealth management instead of reserving it for affluent clients. It is also a chance to reach retail investors who are increasingly seeking professional advice. The company will roll out its banking services later this year with solutions covering real estate, tax advice, and benefits including tickets to the Oscars and the Met Gala. Additionally, Robinhood will also release an AI investment tool in late 2025 aiming to provide real-time analytics and insights. Analyst Ratings on HOOD Analysts are optimistic about the financial services company and have a 'Moderate Buy' rating with a mean price target of $65.63, reflecting upside potential of 56% upside from current prices.
Zawya
27-03-2025
- Business
- Zawya
Robinhood to bring wealth management, private banking to retail investors
Robinhood is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users' financial habits. The company said on Wednesday it is launching 'Robinhood Strategies' — a wealth management service with a 0.25% annual fee, capped at $250, for its premium 'Gold' subscribers. Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood's investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios. The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path to building wealth and securing financial independence, rather than just a hobby. A survey of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances. Robinhood Asset Management President Steph Guild, a JPMorgan Chase alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients. "When we looked across the landscape today, we felt there was a gap and an opportunity," she said. It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights. PRIVATE BANKING The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars. Tapping into users' demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood's strategy of "democratizing" access to products traditionally reserved for the ultra wealthy. "We're not going after someone who has $10 million. We're going after everybody else," said Deepak Rao, general manager and vice president of Robinhood Money. The company's shares have risen 29% so far this year, while the Nasdaq composite index has dropped 5.4%. (Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Sahal Muhammed) Reuters
Yahoo
27-03-2025
- Business
- Yahoo
Robinhood to bring wealth management, private banking to retail investors
By Niket Nishant and Manya Saini (Reuters) -Robinhood is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users' financial habits. The company said on Wednesday it is launching 'Robinhood Strategies' — a wealth management service with a 0.25% annual fee, capped at $250, for its premium 'Gold' subscribers. Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood's investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios. The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path to building wealth and securing financial independence, rather than just a hobby. A survey of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances. Robinhood Asset Management President Steph Guild, a JPMorgan Chase alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients. "When we looked across the landscape today, we felt there was a gap and an opportunity," she said. It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights. PRIVATE BANKING The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars. Tapping into users' demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood's strategy of "democratizing" access to products traditionally reserved for the ultra wealthy. "We're not going after someone who has $10 million. We're going after everybody else," said Deepak Rao, general manager and vice president of Robinhood Money. The company's shares have risen 29% so far this year, while the Nasdaq composite index has dropped 5.4%. Sign in to access your portfolio
Reuters
27-03-2025
- Business
- Reuters
Robinhood to bring wealth management, private banking to retail investors
March 26 (Reuters) - Robinhood (HOOD.O), opens new tab is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users' financial habits. The company said on Wednesday it is launching 'Robinhood Strategies' — a wealth management service with a 0.25% annual fee, capped at $250, for its premium 'Gold' subscribers. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood's investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios. The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path, opens new tab to building wealth and securing financial independence, rather than just a hobby. A survey, opens new tab of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances. Robinhood Asset Management President Steph Guild, a JPMorgan Chase (JPM.N), opens new tab alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients. "When we looked across the landscape today, we felt there was a gap and an opportunity," she said. It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights. PRIVATE BANKING The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars. Tapping into users' demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood's strategy of "democratizing" access to products traditionally reserved for the ultra wealthy. "We're not going after someone who has $10 million. We're going after everybody else," said Deepak Rao, general manager and vice president of Robinhood Money.
