Core Viewpoint - Robinhood is evolving from a simple trading app to a comprehensive money management platform, despite recent revenue falling short of analyst expectations, leading to a significant drop in stock price [1][2]. Group 1: Financial Performance - Robinhood reported year-over-year growth in key metrics, including net deposits, Gold subscriptions, and total platform assets [1]. - The company's total platform assets increased by 68% year over year, reaching $324 billion [6]. Group 2: Product Development and Revenue Generation - Robinhood has 11 products generating over $100 million in annualized revenue, with a credit card expected to bring the total to 12 this year [4]. - The introduction of Robinhood Banking has begun, with 25,000 customers depositing $400 million, indicating strong initial uptake [5]. - The company is actively rolling out new products to enhance long-term revenue potential, including features that leverage artificial intelligence [6]. Group 3: Market Position and Strategy - The management's strategy focuses on broadening the service offerings to transform Robinhood into a long-term growth machine [2]. - The diversification of revenue streams, including trading, subscriptions, and fee-based offerings, positions the company for sustained growth [4][5].

Core Viewpoint - The introduction of the 1099-DA tax form for cryptocurrency investors is expected to create challenges for taxpayers, as it requires them to provide their own cost basis to avoid overpaying taxes on capital gains [5][20]. Group 1: Tax Reporting Changes - The IRS is implementing a new tax form, the 1099-DA, for the 2026 filing season, which will report proceeds from cryptocurrency transactions but will not include the cost basis [5][19]. - This new reporting method aims to standardize how crypto exchanges report user profits to the IRS, potentially generating approximately $28 billion in revenue over a decade [14][15]. - The 1099-DA form is part of the $1.2 trillion Bipartisan Infrastructure Law of 2021, despite pushback from the cryptocurrency industry [14]. Group 2: Investor Responsibilities - Investors must provide their own cost basis to avoid the IRS marking it as $0, which could lead to significantly higher tax bills [2][3]. - The fragmentation of transactions across different exchanges and wallets complicates the ability to track cost basis, leaving many investors with incomplete records [8][20]. - Taxpayers are still required to report income, gains, or losses even if they do not appear on the 1099-DA form, emphasizing the need for diligent record-keeping [12][18]. Group 3: Industry Response - Cryptocurrency exchanges like Coinbase and Robinhood are preparing to assist users with the new reporting requirements, although they cannot provide tax advice [16][17]. - Experts in crypto tax strategy anticipate an increase in demand for services to help investors determine their initial cost basis as the 1099-DA forms are distributed [17]. - The transition to the new reporting system is seen as a test year for exchanges, which are working to improve their reporting capabilities [16].

Robinhood Markets Inc. (NASDAQ:HOOD) is one of the best upside stocks to invest in right now On February 11, Barclays lowered its price target on Robinhood to $124 from $159 while keeping an Overweight rating. This sentiment was posted following a Q4 2025 earnings report that missed revenue expectations. Despite the company’s focus on ambitious long-term goals, Barclays expects a recent slowdown in net new asset growth to impact the stock, which fell 12% in morning trading. The firm attributed the weaker ...

Group 1 - Tether announced a strategic investment in Supreme Liquid Labs, the operator of Dreamcash [1] - Tether is collaborating with Selini Capital to launch the first HIP-3 RWA perpetual contract market based on USDT0 on Hyperliquid [1] - The market currently offers contracts for USA500 (S&P 500), gold, silver, and 10 other assets including Tesla, Nvidia, Google, Amazon, Meta, Robinhood, Intel, and Microsoft [1]

Core Insights - Robinhood has launched a testnet for its proposed blockchain aimed at trading tokenized assets and cryptocurrencies, marking a significant step in its blockchain strategy [1][2] Group 1: Blockchain Development - The infrastructure partners for Robinhood's blockchain include Alchemy, Chainlink, LayerZero, and TRM Labs, which are key players in the Web3 and blockchain space [1] - The testnet is designed to support developers in exploring Robinhood Chain's capabilities, which will enhance the network in preparation for its mainnet launch [3] Group 2: Financial Applications - Robinhood's blockchain is tailored for various financial applications, including lending and perpetual exchanges, expanding beyond traditional asset trading [3] - The company is investing $1 million in the 2026 Arbitrum Open House to stimulate developer activity on the Arbitrum network, which serves as the foundation for Robinhood Chain [4] Group 3: Industry Positioning - Robinhood Chain is positioned to advance the tokenization and permissionless financial services sectors, leveraging Arbitrum's developer-friendly technology [5] - The initial announcement of Robinhood Chain was made in June, alongside plans for U.S. stock and ETF token offerings for EU customers on the Arbitrum platform [7]

Core Viewpoint - Robinhood's stock has declined approximately 33% year-to-date following its latest earnings release, which has affected investor confidence and reset expectations despite the company's ongoing product expansion and growth [1][4]. Company Performance - Robinhood Markets, an online brokerage, has an equity value of nearly $77 billion, with its share price at $76.58 as of early February 13, down 33% year-to-date but still up 20% over the past 52 weeks [4]. - The latest earnings report for the fourth quarter of 2025 showed earnings per share of $0.66, surpassing the consensus estimate of $0.63, indicating solid profitability on a GAAP basis [8]. - Quarterly revenue reached approximately $1.28 billion, reflecting a healthy year-over-year growth rate in the mid-20s percentage [8]. Asset Growth - Total platform assets increased by 68% year-over-year to $324 billion, with retirement assets more than doubling to $26.5 billion as customer adoption of long-term investing and tax-advantaged products rises [9]. - The margin book surged 113% year-over-year to a record $16.8 billion, driven by record equities and options volumes [9]. Market Valuation - Robinhood's stock is currently valued at a PEG ratio of 1.34x and a price-to-sales multiple of 16.02x, compared to sector medians of approximately 1.0x for PEG and 2.94x for sales, indicating a significant growth premium assigned by the market despite the recent stock decline [7].

Robinhood Markets Inc. (NASDAQ:HOOD) ranks among the best high growth high margin stocks to buy now. Truist Securities reduced its price target for Robinhood Markets Inc. (NASDAQ:HOOD) to $130 from $155 on February 6, keeping a Buy rating on the company’s shares. Despite the cut, Truist warned that the market reaction could be overblown, considering that crypto accounts for just 19% of Robinhood’s revenue and 12% of its projected growth for the year. The firm voiced optimism that Robinhood Markets Inc. ( ...

Core Insights - Robinhood Markets (HOOD) and Tradeweb Markets (TW) are transforming electronic trading, with HOOD focusing on retail investors and offering commission-free trading, while TW targets institutional clients with a specialization in fixed-income products [1][2] Company Performance - Both companies reported strong fourth-quarter 2025 earnings, but market reactions diverged, with HOOD shares declining due to weaker crypto activity and concerns over AI disruption, while TW's stock remained stable [2][10] Robinhood's Growth Strategy - Robinhood is expanding rapidly with new product launches and international growth, aiming to become a "financial super app" with features like an AI assistant (Cortex), advanced trading tools (Legend), and a social trading platform [4][5] - The company is also venturing into personal finance and banking services, including a Gold credit card, and is rolling out tokenized U.S. stocks and ETFs in 31 EU/EEA countries [5][6] - HOOD is investing in prediction markets, which are expected to become a billion-dollar business, and has partnered with Susquehanna International Group to acquire a stake in MIAX Derivatives Exchange [6][7] Tradeweb's Strategic Position - Tradeweb is enhancing its leadership in electronic trading through technology innovation and international expansion, with significant investments in automation and AI tools driving growth in fixed-income and derivatives volumes [9][11] - The company has tripled its emerging market revenues since 2023 and captured significant shares in U.S. investment-grade and high-yield electronic trading volumes [11][12] Financial Metrics and Valuation - HOOD's shares have decreased by 40.6% in the past month, while TW's shares have increased by 10%, indicating a divergence in investor sentiment [19] - HOOD is trading at a price-to-tangible book (P/TB) ratio of 8.15X, making it less expensive compared to TW's 8.62X, while HOOD's return on equity (ROE) of 22.32% surpasses TW's 12.05% [23][28] Earnings Estimates - The Zacks Consensus Estimate for HOOD's earnings in 2026 and 2027 suggests growth rates of 21% and 17%, respectively, while TW's estimates indicate increases of 11.5% and 12.4% for the same periods [14][18] Investment Outlook - Despite recent challenges, HOOD is positioned for broader growth with a focus on becoming a comprehensive financial platform, while TW's growth may be more incremental and tied to market cycles [25][28]

Core Insights - Robinhood Markets Inc. is optimistic about its prediction markets business, especially with major sporting events scheduled for the year [1][3] Group 1: Prediction Markets Performance - During the fourth-quarter earnings call, it was revealed that NBA contracts have surpassed NFL contracts in trading activity on Robinhood's prediction market platform [2] - Despite concerns about a decline in trading activity after the 2025 football season, the company anticipates a strong year for sports-related contracts due to events like the Winter Olympics and FIFA World Cup [3] - The CEO noted that non-sports contracts are also performing well, with significant volume driven by contracts related to government shutdowns [3] Group 2: Financial Performance - Robinhood reported a record fourth-quarter revenue of $1.28 billion, although it fell short of the Street estimate of $1.34 billion [5] - The company achieved fourth-quarter earnings per share of 66 cents, exceeding the consensus estimate of 62 cents per share [5] - In 2025, over 12 billion prediction market contracts were traded, with a record 8.5 billion contracts traded in the fourth quarter [5] Group 3: Technological Developments - Robinhood announced the launch of a test version of its Robinhood Chain, an Ethereum Layer 2 solution, allowing developers to create applications for tokenized real-world assets [6] - The company has partnered with Chainlink to enhance advanced tokenization use cases, bridging off-chain and on-chain environments [7]

Core Viewpoint - Robinhood Markets has experienced a significant decline in share price, losing over a third of its value in 2026 due to Q4 revenue falling short of expectations [1] Financial Performance - Q4 revenue increased by 27% to $1.28 billion, but was below the $1.35 billion analyst estimate [2] - Transaction revenue rose by 15% to $776 million, with options revenue soaring 41% to $314 million and equity revenue climbing 54% to $94 million [3] - Cryptocurrency revenue fell sharply by 38% to $221 million, while net interest revenue jumped 39% to $411 million [3] - Total platform assets surged 68% to $324 billion [3] Growth Prospects - The company aims for at least 20% net deposit growth in 2026 and targets $1 trillion in assets in the coming years [4] - Robinhood has launched a banking product with over $400 million in assets and 25,000 funded customers, offering 3.5% interest on deposits [5] - The predictions market is also a focus, with volumes doubling in Q4, reaching a $300 million annual run rate [6] Investment Consideration - Despite challenges in cryptocurrency revenue, the stock is considered attractively valued with a forward P/E ratio of about 29 times based on 2026 estimates, suggesting a potential buying opportunity [8][9]