The Federal Reserve slashed the fed funds rate last month, and more cuts are likely on the way. The Federal Reserve wrapped up its most recent policy meeting on Sept. 18, and its Federal Open Market Committee (FOMC) decided to lower the federal funds rate (the rate commercial banks use when they borrow and lend to one another overnight) by 50 basis points. That was double the 25-basis-point adjustment the Fed normally uses, and it's likely to be a tailwind for the economy because it reduces borrowing costs ...

Retail investing platform Robinhood on Tuesday announced that it's offering customers in Europe the ability to transfer cryptocurrencies in and out of its app, broadening its product capabilities in the region as it presses ahead with international expansion. In a blog post on Tuesday, the company said that it'll allow customers in the European Union to deposit and withdraw more than 20 digital currencies through its platform, including bitcoin, ethereum, solana, and USD coin. The move effectively gives Rob ...

MENLO PARK, Calif., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Today, Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) announced that it will release its third quarter 2024 financial results on Wednesday, October 30, 2024, after market close. An earnings conference call will be held at 2:00 PM PT / 5:00 PM ET on the same day. A live webcast of the call and supporting materials will be available at investors.robinhood.com. Following the call, a replay and transcript will also be available on the same website. Ro ...

The Federal Reserve announced a jumbo 50 basis point (bp) cut in interest rates on Sept. 18 for the first time since March 2020. The central bank has indicated two more cuts this year and four in 2025. Against this backdrop, how will Robinhood Markets, Inc. (HOOD) perform? The company earns massive revenues from interest income. In 2023, net interest revenues of $929 million (50% of total revenues) surged a whopping 119% year over year, driven by four-decade-high interest rates. A similar trend continued in ...

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Robinhood Markets, Inc. (HOOD) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this company have returned +6.6% over the past month versus the Zacks S&P 500 composite's +2% change. The Zacks Financial - Investment Bank industry, to which Robinhood Markets belongs, has gained 1.2% over this period. Now the key question is: Where could the stock be headed in the near term? Alt ...

Robinhood's Business Performance - Robinhood's stock price soared to a record high of $85 shortly after its IPO in 2021, driven by its popularity among young, first-time investors [1] - The stock price sank 91% to an all-time low of around $7 by mid-2022 due to the S&P 500 bear market, which deterred many clients from investing [2] - The company's stock price recovered with an 83% gain in 2024, largely due to the Federal Reserve's rapid interest rate hikes, which boosted interest revenue [3] Revenue Trends - Robinhood's monthly active users peaked at 21.3 million in mid-2021 but dropped to 11.8 million in Q2 2024 [4][5] - Transaction-based revenue in Q2 2024 was $327 million, significantly below the peak of $451 million in Q2 2021 [5] - Net interest revenue surged 319% from $68 million in Q2 2021 to a record $285 million in Q2 2024, driven by higher federal funds rates [6] Interest Revenue and Cash Holdings - Robinhood held $4.5 billion of its own cash and $4.5 billion in client funds in interest-bearing accounts in Q2 2024 [7] - The company's margin book reached an all-time high of $5 billion in Q2 2024, generating $73 million in interest revenue [8] Impact of Federal Reserve Rate Cuts - The Federal Reserve cut the federal funds rate by half a percentage point last week, with further cuts expected, potentially reducing Robinhood's net interest revenue [9][10] - The federal funds rate could decrease by almost half from its recent peak of 5.33%, leading to a significant decline in Robinhood's interest revenue [10] Transaction-Based Revenue Growth - Robinhood's transaction-based revenue growth in 2024 is primarily driven by options and cryptocurrency trading, which are riskier and less reliable for long-term growth [11] - The company cannot rely on these segments to offset the expected decline in interest revenue [11] Stock Price Outlook - The recent recovery in Robinhood's stock price may stall as interest rates decline further, making it a less attractive investment at this time [12]

Robinhood Markets Inc HOOD stock is up after Piper Sandler analyst Patrick Moley maintained an Overweight rating and raised its price target from $23 to $27. The re-rating follows the 50 bps Fed rate cut, with Moley reiterating that the second-order effects of Fed rate cuts on margin balance growth and overall retail trading activity will be enough to offset the negative impact of lower rates. The price target reflects seven times the analyst's 2026 revenue estimate (up from 6 times previously to reflect re ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page. Considering buying Robinhood stock? Here's what analysts think: Robinhood Markets Inc has a consensus price target of $21.56 based on the ratings of 20 analysts. The high is $32 issued by B of A Securities on August 12, 2024. The low is $7 issued by Atlantic Equities on August 31, 2022. The 3 most-recent analyst ratings ...

Investors might want to bet on Robinhood Markets, Inc. (HOOD) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and followin ...