Robinhood flies on the Stock Exchange thanks to crypto: record profits

Yesterday, Robinhood released its latest quarterly report, in which it states that crypto revenues in the fourth quarter of 2024 increased by 700%. This, along with the fact that overall earnings exceeded expectations, generated a true bull jump in the stock market of 17% in after-hours trading.

Robinhood on the Stock Exchange during the bull run crypto

The American company went public only in 2021, in the midst of a bull run. 

One must not forget that he is only twelve years old, so in reality his entry into the stock market should be considered decidedly early. 

The initial price was about $38, but already the following month it recorded the all-time high at $85. The stock market debut during a full bull run turned out to be a good choice for the shareholders of that time, but the same cannot be said for those who bought HOOD shares in those months.

In fact, already in October of the same year, the price began to fall, only to plummet even below $7 during the bear-market of 2022. 

At that point, from the initial price, it had lost almost 80% in less than a year, after having recorded an initial +140%. 

In fact, at that time it was a speculative stock with high volatility, but things seemed to have normalized afterward. In fact, until January of last year, the price practically moved sideways for almost two years below $13.

The two turns of HOOD stocks

The first turning point occurred in February of last year, when with a leap of 90% in just over a month and a half, it climbed back above $20. 

At that point, a bull run was triggered that at least allowed Robinhood’s stock to recover part of what it had lost during the bear-market. 

That bullrun, however, stopped below $25, also because then in August, for a brief moment, it fell back below $14. 

The second turning point occurred in October, when with a jump of 20% in less than a month it returned to $28. 

With Trump’s electoral victory, that leap ended up turning into a new bull run, which through ups and downs might still be ongoing.

The maximum peak reached during the bullrun was the $57 touched on Monday. 

The boom of crypto: Robinhood takes advantage

Yesterday, when the quarterly report was released, the USA stock exchanges had already closed. 

However, the impact of those data was immediately felt during the after-hours trading.

The price of HOOD shares, in fact, in a few hours returned above $66, even though at a later time it then settled below $65. 

Not only are these the highest prices of this bullrun, but they are only lower than the peaks of the mini-bubble of August 2021, which lasted only two days. 

Therefore, net of that mini-bubble, the price of Robinhood shares is actually at historic highs. 

A good part of this recent boom is due to the success of crypto services.

In fact, in the fourth and final quarter of 2024, the company reports having earned 358 million dollars from the crypto markets, which is more than half of the 672 million dollars in total transaction revenues. 

It should be remembered that Robinhood is a trading platform, and it earns through commissions and spreads on prices. 

All this was generated by an increase of over 450% year on year in the crypto trading volumes, rising to 71 billion dollars in total for the entire quarter. 

The other results

The other positive factor that triggered the jump in the stock market is the one related to the net profit.

It was in fact a substantial 916 million dollars, which is over 9% higher than previous estimates. It was also the fifth consecutive quarter of profits.

The direttore finanziario di Robinhood, Jason Warnick, stated that the fourth quarter of 2024 was a record quarter for the company, concluding an entire record year.

It also revealed that net deposits amounted to 16 billion dollars, and there was an overall year-on-year increase of even 88% in assets under custody, which rose to 193 billion dollars.

It is not surprising, therefore, that the CEO of Robinhood, Vlad Tenev, has revealed that the company is looking to expand its cryptocurrency offering, particularly in the RWA (Real World Asset) sector, because they believe that the true power of crypto technology is manifested when it can be applied to productive real-world assets.