Robinhood shares rocket as crypto frenzy fuels record results
Retail investors flock back to sector on Trump pledge to industry
13 February 2025 - 14:03
byReuters
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The logo of Robinhood Markets on Wall Street after the company’s IPO, in New York, the US, July 29 2021. Picture: REUTERS/ANDREW KELLY
New York — Robinhood shares surged nearly 16% in premarket trading on Thursday after the trading platform reported record fourth-quarter revenue and profit on a resurgence in retail trading.
Retail trading rebounded significantly in 2024 as bitcoin and US stocks reached all-time highs, driven by optimism over easing regulatory hurdles for digital assets and expectations of a soft landing for the economy.
The Menlo Park, California-based company blew past Wall Street expectations for quarterly earnings, with transaction-based revenue more than tripling.
“The year of 2024 was a near-perfect environment for retail trading," analysts at JPMorgan said, adding that Robinhood’s expense discipline and introduction of new products are translating into higher profits.
Long dominated by high-profile names such as Vanguard, Charles Schwab and Fidelity Investments, the US brokerage industry was disrupted when Robinhood pioneered commission-free trading in 2013.
A decade on, Robinhood is expanding to cater to more seasoned investors and capture market share from incumbents.
If premarket gains hold, the company will add roughly $8bn to its market capitalisation.
‘Trump bump’
Animal spirits took over the crypto sector in November after Donald Trump secured a second term in the White House.
His pledge to make the US the “crypto capital of the universe" and his pro-industry stance propelled bitcoin past $100,000 for the first time, igniting a broad rally across the market.
“Trading volumes in equities, options and crypto surged in the fourth quarter, which is a sign that retail traders have confidence in all risk markets across the board," said Paul Marino, chief revenue officer at Themes ETFs.
Robinhood’s transaction-based revenue from crypto trading surged more than eightfold in the fourth quarter to $358m.
“Its hard to predict when the transaction revenue will end, but perhaps the long historical investment norm of buy and hold has retired with the baby boomers," Marino added.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Robinhood shares rocket as crypto frenzy fuels record results
Retail investors flock back to sector on Trump pledge to industry
New York — Robinhood shares surged nearly 16% in premarket trading on Thursday after the trading platform reported record fourth-quarter revenue and profit on a resurgence in retail trading.
Retail trading rebounded significantly in 2024 as bitcoin and US stocks reached all-time highs, driven by optimism over easing regulatory hurdles for digital assets and expectations of a soft landing for the economy.
The Menlo Park, California-based company blew past Wall Street expectations for quarterly earnings, with transaction-based revenue more than tripling.
“The year of 2024 was a near-perfect environment for retail trading," analysts at JPMorgan said, adding that Robinhood’s expense discipline and introduction of new products are translating into higher profits.
Long dominated by high-profile names such as Vanguard, Charles Schwab and Fidelity Investments, the US brokerage industry was disrupted when Robinhood pioneered commission-free trading in 2013.
A decade on, Robinhood is expanding to cater to more seasoned investors and capture market share from incumbents.
If premarket gains hold, the company will add roughly $8bn to its market capitalisation.
‘Trump bump’
Animal spirits took over the crypto sector in November after Donald Trump secured a second term in the White House.
His pledge to make the US the “crypto capital of the universe" and his pro-industry stance propelled bitcoin past $100,000 for the first time, igniting a broad rally across the market.
“Trading volumes in equities, options and crypto surged in the fourth quarter, which is a sign that retail traders have confidence in all risk markets across the board," said Paul Marino, chief revenue officer at Themes ETFs.
Robinhood’s transaction-based revenue from crypto trading surged more than eightfold in the fourth quarter to $358m.
“Its hard to predict when the transaction revenue will end, but perhaps the long historical investment norm of buy and hold has retired with the baby boomers," Marino added.
Reuters
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