Robinhood (NASDAQ: HOOD) inventory is again to a value final seen in September 2021, hovering above $45.81. This spectacular comeback marks a brand new milestone for the fintech and buying and selling platform, extremely benefiting from renewed optimism on cryptocurrencies.
Notably, HOOD closed the Wednesday session, on January 15, with a 30.31% premium from its preliminary public providing (IPO). The fintech launched itself to america inventory market on July 28, 2021, buying and selling at $38 per share.
Nevertheless, the next years after the IPO have been really difficult for Robinhood, going as little as $8 per share in a number of events, beginning a shy restoration solely in 2024. At $45.81 per share, HOOD is up 462% from its lowest value, thriving with sturdy momentum beneath value discovery.
In hindsight, various factors aligned to created Robinhood’s bearish situation from 2021 to 2024, whereas the alternative has additionally been true within the final yr, making ready the bottom for HOOD to now be hovering.
Elementary evaluation backing Robinhood (HOOD) inventory’s surge
General, the latest surge aligns with an ongoing cryptocurrency bull market, with Bitcoin (BTC) making new highs above $100,000. Robinhood, moreover providing inventory trades, has embraced cryptocurrencies even beneath an unsure regulatory situation, which partially prompted its crash earlier than.
Thus, a extra crypto-friendly regulatory panorama, adopted by this market’s growth is optimistic for HOOD, bettering retail’s sentiment. Not solely that, however the market’s sentiment is optimistic in the direction of fintechs and buying and selling platforms, driving Robinhood and its rivals upwards.
Furthermore, the corporate reported optimistic outcomes final yr. For instance, in October 2024, Robinhood reported report web deposits of $5.2 billion, showcasing sturdy person progress and engagement.
Analysts count on continued progress in web belongings beneath custody, which helps adjusted EBITDA margin growth and robust EPS progress projections for 2025 and past. The corporate reported profitability over the past twelve months, signaling a turnaround from earlier losses, successfully hovering the inventory value.
Robinhood inventory is hovering, however there’s a bearish case
Whereas issues seem principally optimistic, the monetary market all the time has counterpoints price contemplating when evaluating a hovering inventory like HOOD.
Regardless of the rally, Robinhood’s inventory value might be susceptible to broader market circumstances. If macroeconomic circumstances deteriorate or if there’s a major drop in buying and selling volumes because of market downturns, Robinhood’s income, which closely depends on transaction-based revenue, may undergo.
Robinhood faces stiff competitors not solely from conventional brokerages, but additionally from different fintech startups providing comparable or higher companies. The aggressive business may stress Robinhood’s market share and pricing technique, particularly if new entrants or established gamers supply extra aggressive choices or higher person experiences.
Moreover, after vital positive aspects, some analysts would possibly argue that Robinhood’s valuation seems stretched, buying and selling at excessive multiples in comparison with earnings. This might make the inventory vulnerable to corrections if progress doesn’t meet expectations or if there’s a shift in investor sentiment in the direction of HOOD and different fintech or progress shares.
All issues thought of, Robinhood inventory is hovering in a positive situation for crypto, fintechs, and buying and selling platforms. Nonetheless, basic and technical components, particularly pushed by macroeconomics or competitors, pose a problem for HOOD all through 2025.
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