$Robinhood(HOOD)$ Monthly Analysis
Technical Setup: HOOD broke out of a multi year base started in January of 2022 and formed a Cup and Handle pattern. Once we broke out above 26 we saw a massive move near $50. Currently we are consolidating near the highs of that breakout. It's only a matter of time before we see a continuation move back to the IPO highs of 85.
Earnings Highlights: WE saw Q3 2024 revenue surge 36% YoY to $637M with a net income of $150M. Margins are also expanding showing that the business health is solid.
Product Expansion: Robinhood has had many new developmental launches such as Robinhood Legend desktop platform, futures trading, index options, added crypto exposure, credit card, and new retirement products.
Future Growth Opportunities: It is rumored that Robinhood is exploring the sports betting space - an industry projected to grow $182B+ by 2030, which could expand their revenue streams. Robinhood is very tailored to the new generation of investors; however, they are starting to appeal towards the older investors with their simple user interface.
International Expansion: Robinhood launched in the UK back in March of 2024, this opens the door to enter in other international markets growing their user base.
Crypto Opportunities: With the Trump administration coming in, favorable regulatory changes and increasing crypto trading activity will likely boost Robinhood's revenue. We will likely see more cryptocurrencies be adopted on the platform in the near future.
My conservative price target for Robinhood (HOOD) by the end of 2025 is $100.
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