Robinhoodโs stock jumped sharply after surprising investors with stronger-than-expected Q4 results. A stock price of a popular trading app known for offering commission-free stock, options, and crypto trading, surged 13% to $63.20 on Thursday following the release of stronger-than-expected Q4 results.
Robinhood Sees Record Growth
The California-based company reported that crypto transactions alone generated a record $358 million in revenue for Q4 2024, reflecting an impressive 700% increase year-over-year. This marked the highest quarterly crypto transaction revenue in the companyโs history.
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For the full year, Robinhoodโs crypto-related revenue reached $1.01 billion, exceeding the initial target of $945.8 million by $55 million, underscoring the company’s robust growth in the digital asset space.
Robinhood was one of the first mainstream apps to integrate cryptocurrency trading alongside stocks, options, and ETFs.
A popular trading app has played a significant role in shifting the market toward retail-driven trading, particularly during events like the GameStop trading frenzy in early 2021, where its user base mobilized to influence stock prices.
Expands Crypto and Global Reach
According to the company’s SEC filing, strong product development drove Robinhoodโs record growth in 2024.
Last month, Robinhood made index options available to all customers and began offering futures trading in the app for stock indexes, energy, currency, metals, and crypto.
The trading app has also significantly increased access to cryptocurrencies in both the U.S. and the European Union (EU).
In Q4 2024, its crypto trading volumes grew by over 400%, reaching $71 billion. Robinhood also added seven new crypto assets for U.S. users and launched Ethereum staking in the EU. It also recently began offering options trading to customers in the UK.
In June 2024, Robinhood announced plans to acquire Bitstamp, one of the oldest crypto exchanges, which serves both institutional and retail customers globally. The deal is expected to close by mid-2025, pending regulatory approval.
This year, the company also plans to expand into the Asia-Pacific region, with its main office in Singapore.
On the Flipside
- Robinhood’s position is also challenged by growing competition from other apps, like Webull, eToro, and traditional brokerages offering similar low-cost options and crypto trading.
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