Robinhood Stock Surges After Bernstein’s Positive Growth Forecast

Following a Bernstein report forecasting substantial growth, Robinhood’s stock has risen by over 4%.

The company’s entry into the cryptocurrency market, which is drawing a younger user base, has significantly boosted its overall market value. The stock has experienced a notable 66% increase in value this year, attracting attention from both bullish investors and crypto enthusiasts.

Bernstein, a private wealth management firm, predicts that Robinhood’s operating income could reach around $900 million this year. Analysts from the firm anticipate that the company will generate approximately $3.4 billion in revenue next year, with its market value potentially climbing to between $19 billion and $23 billion.

This optimistic outlook is attributed to Robinhood’s recent expansion into cryptocurrencies. The company has seen a remarkable increase in revenue from its crypto ventures, with a 161% year-on-year rise in crypto-related income, reaching $81 million in the second quarter of 2024.

In addition, Robinhood has announced plans to acquire the cryptocurrency exchange Bitstamp for $200 million. This move is expected to enhance its global presence, particularly in retail and institutional markets across Asia, the EU, the US, and the UK.

The acquisition of Bitstamp, which holds over 50 active licenses worldwide, is anticipated to accelerate Robinhood Crypto’s international expansion significantly.

Moreover, Robinhood has recently settled with California regulators and is working to extend its services to the UK. Despite a dip in stock value due to broader market sentiment, analysts remain optimistic about the company’s growth prospects.