Robinhood Markets Inc.’s (HOOD) units — Robinhood Financial and Robinhood Securities — have to pay $26 million to settle Financial Industry Regulatory Authority (“FINRA”) allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers.Also, FINRA has ordered Robinhood Financial to pay $3.75 million in compensation to the trading platform’s customers.Details of Allegation Against HOODFINRA found that Robinhood Financial provided customers ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Robinhood Markets, Inc. (HOOD), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][4]. Group 1: Brokerage Recommendations - Robinhood Markets has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy, with 12 out of 20 recommendations classified as Strong Buy (60%) and 2 as Buy (10%) [2]. - The article suggests that relying solely on the ABR for investment decisions may not be advisable, as studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [4][9]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - The Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and has a proven track record in predicting near-term stock price movements, contrasting with the ABR which is based solely on brokerage recommendations [7][10]. Group 3: Earnings Estimates and Investment Potential - The Zacks Consensus Estimate for Robinhood Markets has increased by 30.3% over the past month to $1.51, reflecting analysts' growing optimism regarding the company's earnings prospects [12]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Robinhood Markets, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [13].

DENVER and MENLO PARK, Calif., March 6, 2025 /PRNewswire/ -- CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, and Robinhood Derivatives LLC ("Robinhood") (NASDAQ: HOOD), announced today that they have partnered to use CQG's professional-grade infrastructure to handle order routing for Robinhood Derivatives' futures customer orders. As of January 31, 2025, Robinhood has 25.5 million funded customers and assets under ...

The cryptocurrency rally has come to a sudden halt, with Bitcoin (BTC) retreating sharply from its earlier highs. Over the past couple of days, Bitcoin has lost more than 15%, triggered by a huge selloff of digital assets amid growing fears of a trade war, following President Donald Trump’s announcement of hefty tariffs.There are a large number of factors weighing on Bitcoin but the decline is temporary as experts believe that the cryptocurrency still has a lot of potential and the rally will resume once th ...

Core Viewpoint - Robinhood Markets (HOOD) and Coinbase Global (COIN) have experienced significant stock price fluctuations recently, but both companies have shown strong performance in the past two years, outperforming broader market indexes due to positive earnings estimate revisions [1][2][3]. Company Performance - Robinhood's stock reached a 52-week high of $66 earlier this month but has since declined over 20% from that peak [2]. - Coinbase shares climbed to over $300 but have fallen 30% from a near two-month high [2]. - Over the last two years, Robinhood has gained over 400% and Coinbase over 200%, significantly outperforming broader indexes [2]. Earnings Estimates - Robinhood's FY25 EPS estimates increased by 28% in the last 30 days, from $1.18 to $1.51, while FY26 estimates rose 15% from $1.47 to $1.70 [4]. - Coinbase's FY25 EPS estimates surged 110% in the last 30 days, from $3.48 to $7.32, and FY26 estimates skyrocketed nearly 200% from $2.97 to $8.72 [6]. Valuation Metrics - Coinbase is currently trading at a forward earnings multiple of 29.4X, down from a one-year high of 255.3X and a median of 54.2X [8]. - Robinhood trades at 32.4X forward earnings, below its one-year high of 89.3X and slightly below the median of 41.8X [9]. Investment Outlook - Both Robinhood and Coinbase have received a Zacks Rank 1 (Strong Buy) rating due to positive earnings estimate revisions [11]. - The recent pullback in stock prices is viewed as a healthy correction, making them attractive buy-the-dip targets given their reasonable valuations [11].

Over the past week, shares of Robinhood Markets Inc. (HOOD) have plunged 24%, paring back some of this year's gains. This decline coincides with waning investor enthusiasm for cryptocurrency, broader macroeconomic uncertainty stemming from widespread Trump tariffs and the recent hack of the crypto derivatives exchange Bybit.The crypto rally seems to be losing momentum, with Bitcoin currently trading below the $90,000 mark, despite optimism within the crypto industry about a pro-crypto Trump administration a ...

New York, NY, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Announcement: RobinHood ($HOOD Coin) is officially live! Built on the Solana blockchain, this community-driven cryptocurrency is now available for trading, empowering individuals to take control of their financial future. Why $HOOD?RobinHood isn’t just another token—it’s a movement. Inspired by the legendary outlaw who fought for fairness and equality, $HOOD Coin is designed to break down financial barriers and create an inclusive, decentralized economy. Key F ...

Robinhood Markets (HOOD -8.03%) has sent investors on a rollercoaster ride since going public in 2021. Its stock listed at $38 per share, soared to a record high of $85, and then plunged by 91% to an all-time low of around $7 -- all in less than a year.Shareholders were bullish on Robinhood's ability to attract young, first-time investors to its trading platform, where they can buy and sell stocks, options, cryptocurrencies, and more. However, since many of those clients make risky short-term bets as oppose ...

Robinhood Markets CEO Vlad Tenev reportedly said Tuesday (Feb. 25) that government regulation is good for the company’s business.Speaking with Bloomberg Television, Tenev added that the Robinhood knows how to operate in a regulated arena.“I think customers want to know that their assets are safe and that someone is watching over the companies that are providing financial services to them and holding them accountable,” Bloomberg reported Tuesday.Tenev’s comments came a day after Robinhood said that after rec ...

MENLO PARK, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that it will be participating in the upcoming Citizens JMP Technology Conference on Tuesday, March 4, 2025. Robinhood Chairman and Chief Executive Officer Vlad Tenev is scheduled to present on Tuesday, March 4, 2025, at 11:00 AM PT / 2:00 PM ET. Interested parties may access a live audio webcast of the presentation by visiting investors.robinhood.com. Following the presentation, a recor ...