ToplineRobinhood shares soared Thursday after the company reported a massive uptick in retail investor activity amid the stock market and cryptocurrency boom.A Robinhood popup in downtown Manhattan on the day of the company's 2021 IPO. Getty Images Key FactsRobinhood’s stock rallied as much as 12% to $19 shortly after market open after the mobile brokerage reported a 16% month-over-month increase in customers' assets held with the company. It’s Robinhood’s highest intraday share price since Dec. 23, 2021, ...

MENLO PARK, Calif., March 13, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. ("Robinhood") (NASDAQ:HOOD) today reported selected monthly operating data for February 2024: Funded Customers at the end of February were 23.6 million, up approximately 130 thousand from January 2024.Assets Under Custody (AUC) at the end of February were $118.7 billion, up 16% from January 2024. Net Deposits were $3.6 billion in February, translating to a 42% annualized growth rate relative to January 2024 AUC. Over the last twe ...

Investors might want to bet on Robinhood Markets, Inc. (HOOD) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings es ...

Robinhood Markets, Inc. (HOOD) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by ...

Financial technology has taken the world by storm as one of the most important sectors of the economy. With the adoption of artificial intelligence (AI) and innovation in technology, the fintech sector is expanding at a rapid pace. A report by McKinsey highlights that the revenue in the fintech space is set to grow about three times faster than the revenue in traditional banks between 2023 and 2028. Fintech stocks are set to benefit from the transformation of the industry, and we could see the companies rep ...

Robinhood Markets, Inc. (HOOD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this company have returned +40.4%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Financial - Investment Bank industry, which Robinhood Markets, Inc. falls in, has gained 4.3%. The key question now is: What could be th ...

How To Move Your Account (Acat) From Fidelity Investments To Robinhood Creative Commons Via Flikr Retirement accounts are meant to be set up and forgotten until the day you retire and find out how well it performed over all those years. Investment banks are counting on this. They don’t expect you to check on how your investments are doing, and they definitely don’t want you looking around for better options to manage your money. Today, however, new options and new technology make taking a closer look at y ...

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 +47.6% over the past month versus the Zacks S&P 500 composite's +4% change. The Zacks Financial - Investment Bank industry, to which Robinhood Markets, Inc. belongs, has gained 4.4% over this period. Now the key question is: Where could the stock be headed in the near ter ...

MENLO PARK, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. ("Robinhood") (NASDAQ:HOOD) today announced that it will be participating in the upcoming JMP Securities Technology Conference on Monday, March 4, 2024. Robinhood Chief Financial Officer Jason Warnick is scheduled to present on Monday, March 4, 2024, at 10:00 AM PT / 1:00 PM ET. Interested parties may access a live audio webcast of the presentation by visiting investors.robinhood.com. Following the presentation, a recording will b ...

Macroeconomic and Market Risks - The company might not grow in line with historical rates due to slowing macroeconomic conditions and reduced demand for its platform[107][108] - Daily revenue trades for options, equities, and crypto declined by 33%, 49%, and 75% respectively in fiscal year 2022 compared to 2021 due to bear markets[142] Operational and Financial Risks - The company has limited operating experience at its current scale, which introduces uncertainties and risks that could adversely affect its business[109] - The company's results of operations and operating metrics fluctuate significantly from quarter to quarter, making them difficult to predict[113] - The company has incurred operating losses in the past and might not achieve profitability in the future[117] - The company might need additional capital to support business growth, and failure to secure such capital could adversely affect its financial condition and results of operations[130][134] - The company's reliance on third-party service providers for key functions introduces operational risks[105] - The company's remote work policy, including a Return to Office policy since September 2023, poses operational risks such as reduced productivity and increased vulnerability to cybersecurity attacks[145] - The company's ability to attract and retain highly skilled personnel, particularly in the competitive San Francisco Bay Area, is critical for future success, with stock price declines exacerbating recruitment challenges[149] - Future acquisitions or investments could disrupt operations, dilute stockholder value, and result in unforeseen liabilities, with potential challenges in integrating acquired personnel and technologies[155] - The company's reliance on key employees, including co-founders Vladimir Tenev and Baiju Bhatt, is crucial for business development and strategic direction, with recent changes in senior management adding uncertainty[147] Regulatory and Compliance Risks - The company is subject to extensive and evolving laws and regulations, and non-compliance could harm its business[105] - PFOF practices have drawn heightened scrutiny from regulatory authorities, potentially leading to increased compliance costs and decreased transaction-based revenue[121] - The SEC proposed four equity market structure rules in December 2022, which could indirectly make PFOF more difficult or impossible to earn, impacting revenue[121] - The company faces risks related to "best execution" requirements, with potential penalties for non-compliance and possible regulatory changes that could harm the business[128][129] - Regulatory changes, such as proposed amendments to SEC Rule 15c3-3, could make it more difficult for the company to comply with capital maintenance requirements[130] - The company is subject to extensive and complex regulations across multiple jurisdictions, including anti-bribery, anti-corruption, and anti-money laundering laws[163] - Compliance with regulations could impose substantial costs, delay product launches, or require significant operational changes[169] - The company has resolved regulatory matters with fines, including a $70 million settlement with FINRA in June 2021[171] - The company paid a $30 million penalty in an August 2022 settlement with NYDFS and engaged an independent compliance consultant[171] - The company has reached settlements with over 30 state regulators since March 2023, with potential additional settlements totaling up to $10 million[175] - The company paid a $7.5 million fine in a January 2024 settlement with MSD related to supervision and cybersecurity measures[175] - The company faces potential regulatory changes, including SEC proposals that could impact its business model and practices[176] - Regulatory changes by FINRA could reduce the number of Robinhood customers approved to trade options, potentially impacting options trading volumes and associated revenues[177] - FINRA's updated guidance on social media marketing has led the company to narrow the scope of its social media influencer and affiliate publisher programs, which could slow customer growth[178] - The company paid a $30 million penalty in August 2022 to settle an NYDFS investigation related to anti-money laundering and cybersecurity issues in its cryptocurrency business[186] - The company is subject to stringent data privacy and security laws, including the California Consumer Privacy Act and GDPR, which could increase operational costs and restrict business practices[221] - The company may need to obtain MiCA registration by December 30, 2024, or face operational disruptions in certain EU member states[267][268] Cryptocurrency Risks - The company is exposed to risks related to cryptocurrency trading, including regulatory uncertainty and market volatility[119] - The company's Class A common stock fell 18% intra-day on November 8, 2022, following FTX's withdrawal halt, and received an SEC subpoena in December 2022 regarding cryptocurrency listings and custody[139] - The company terminated a $12 million acquisition of Ziglu Limited in February 2023 due to regulatory uncertainty, delaying international expansion plans, particularly in cryptocurrency trading[153] - The company's international expansion increases exposure to foreign fraud vectors and regulatory complexities[162] - Regulatory risks related to cryptocurrency products and services, including potential fines, penalties, and business limitations if private keys are lost or compromised[240][241] - Majority of cryptocurrency coins held in cold storage, with some in hot wallets for daily operations, and reliance on third-party technology for custody and settlement[242] - Cryptocurrency market volatility and its impact on trading volumes, with factors such as global supply and demand, regulatory measures, and market manipulation influencing prices[244][245] - Historical trends show positive cryptocurrency market capitalization growth, but future adoption rates could slow or decline, negatively affecting the company's business[247] - Dogecoin transactions contributed 7%, 32%, and 8% of total net revenues in Q1, Q2, and Q3 of 2021, respectively, highlighting the impact of market interest in specific cryptocurrencies[248] - Enhanced risk management measures implemented in response to 2022 Crypto Bankruptcies, including reduced net open position limits and additional banking partners[252] - Uncertainty around the classification of cryptocurrencies as securities, with potential regulatory scrutiny and legal actions if classifications are incorrect[253] - The SEC is considering whether certain cryptocurrencies supported by the company's platform, including Cardano, Polygon, and Solana, are securities, which could impact their regulatory status and value[255] - If Bitcoin, Ethereum, or other supported cryptocurrencies are deemed securities, it could severely limit their liquidity, usability, and transactability, and negatively impact the company's business[256] - The company has ceased support for Cardano, Polygon, and Solana due to regulatory concerns, which could negatively affect customer sentiment and financial performance[259] - The SEC's February 2023 Custody Rule Proposal could require the company to cease custodial crypto offerings if it is not deemed a "qualified custodian," impacting a primary revenue source[262] - Transaction Rebates from cryptocurrency trading comprise a significant percentage of the company's total net revenues, and regulatory actions could materially decrease this revenue[264] - The implementation of SAB 121 requires the company to recognize a liability and asset for cryptocurrencies safeguarded for users, which has raised concerns about asset security in platform bankruptcies[265] - New tax reporting requirements under the Infrastructure Investment and Jobs Act and proposed IRS regulations could significantly increase compliance costs and liabilities[266] - The Robinhood Wallet and Crypto Transfers features expose the company to risks of customer asset loss, disputes, and liabilities due to user errors[269][270] - Cryptocurrency deposits and withdrawals increase the risk of illegal activities such as fraud, money laundering, and tax evasion, potentially leading to significant liabilities and reputational harm[272] - Blockchain "forks" can disrupt networks, cause cybersecurity attacks, and lead to temporary or permanent loss of customer cryptocurrencies[275] - The company relies on third-party banks, market makers, and liquidity providers for cryptocurrency settlements, and operational failures could disrupt trading and reduce transaction-based revenues[279] - Loss of banking partners or liquidity providers, such as Circle for USDC, could significantly impact cryptocurrency trading volumes and revenues[281][282] - Technical issues from blockchain network changes or upgrades could lead to customer asset loss, platform disruptions, and potential liability[283] Cybersecurity and Data Privacy Risks - Cybersecurity attacks, privacy breaches, or payment disruptions could damage the company's brand and reputation, impacting platform reliability[138] - The company holds cash and investment accounts significantly exceeding FDIC insurance limits, and the failure of financial institutions could lead to temporary or permanent access limitations, affecting operations and payments[140] - The company's platform experienced outages in March 2020 and April-May 2021, impacting customer transactions[202] - The company's customer service team experiences backlogs during market outages or platform disruptions[204] - The company's app depends on interoperability with mobile operating systems like Android and iOS[205] - The company relies on third-party cloud technology providers, including Amazon Web Services, for platform operations[208] - The company is incorporating AI technologies into products and processes, which may present compliance and reputational risks[210] - The company faces risks from third-party service providers' potential inability to meet future service needs efficiently[209] - The company faces cybersecurity risks, including potential breaches of customer data and third-party service provider vulnerabilities[213] - Approximately 2,000 customer accounts were allegedly accessed by unauthorized users from January 1, 2020, to October 16, 2020[214] - The November 2021 Data Security Incident exposed names or email addresses for millions of people and phone numbers for several thousand people[214] - Unauthorized posts on social media accounts in January 2023 were removed within minutes, with the source believed to be a third-party vendor compromise[217] - A security breach at Okta in March 2022 could have potentially allowed access to sensitive internal systems, but the issue has been corrected and no access was confirmed[217] - The company faces significant financial and operational risks from cybersecurity breaches, including potential legal liabilities, regulatory scrutiny, and increased security costs[218] - A Q4 2022 processing error resulted in a $57 million loss, with ongoing inquiries from FINRA staff[227] Transaction and Revenue Risks - Transaction-based revenue, including Payment for Order Flow (PFOF) and Transaction Rebates, is sensitive to trading volumes and regulatory changes, which could reduce profitability[118] - The company's business relationships with market makers are not governed by binding contracts, which could lead to reduced transaction-based revenue if market makers alter fee structures or cease operations[120] - Negative publicity surrounding PFOF or Transaction Rebate practices could harm the company's brand and reputation, potentially leading to customer disengagement[122][124] - Interest income contributes a significant portion of total net revenues, and reductions in interest rates could negatively impact net revenues, net income, and cash flows[125] - Higher interest rates could lead to increased delinquencies, charge-offs, and allowances for loan and interest receivables, adversely affecting net income[126] - The company faces aggressive price competition and risks losing customers if competitors forgo PFOF, a significant revenue source[188] - The company's ability to innovate and deliver competitive products is critical to maintaining customer engagement and revenue growth, with challenges including regulatory scrutiny and technical complications[197] - The company experienced a $3.6 million loss due to remediation payments for the March 2020 Outages[202] - Outbound ACATS transfers in Q1 2021 totaled $4.2 billion, involving 5.2% of AUC from approximately 206,000 accounts, compared to $0.5 billion and 1.2% of AUC in 2020 on average[196] - A Q4 2022 processing error resulted in a $57 million loss due to customers executing trades selling more shares than they held, creating a temporary short position[199] - The company relies heavily on its self-clearing platform and proprietary systems, making it vulnerable to internal technology failures that could harm its reputation and operations[199] - Customer growth in 2020 and 2021 included over 50% of new customers who reported Robinhood as their first brokerage account, highlighting the importance of retaining and engaging these users[192] International Expansion Risks - The company faces risks related to international expansion, including regulatory challenges and market acceptance[105] - International expansion exposes the company to regulatory, economic, and operational risks, including compliance with local laws, increased competition, and challenges in obtaining intellectual property rights[158] - Expansion into international markets increases compliance costs and exposes the company to additional regulatory risks, including anti-money laundering and counter-terror financing laws[187] - The company's international expansion subjects it to additional regulatory scrutiny and compliance costs, particularly under evolving cryptocurrency laws and accounting standards[260][261] Intellectual Property Risks - The company's success depends on obtaining, maintaining, protecting, and enforcing intellectual property rights, which may not be sufficient to prevent third-party infringement or unauthorized use[292] - The company relies on non-registered proprietary information, such as trade secrets, and uses confidentiality agreements, but these measures may not prevent unauthorized access or use[293] - Loss of trade secret protection could enable competitors to copy functionality, harming the company's competitive position[294] - Disputes may arise over intellectual property rights if third-party intellectual property is used in the company's work[295] - Significant resources may be required to apply for, maintain, and enforce intellectual property rights, potentially leading to substantial costs and resource diversion[296] - The company may face claims of violating third-party intellectual property rights, which could result in costly litigation and adverse effects on business operations[297] - Use of third-party software and intellectual property may expose the company to infringement or misappropriation claims[298] - Competitors or third parties may claim intellectual property infringement, leading to potential financial and operational risks[299] - The likelihood of infringement claims is expected to grow as the financial services market expands and new products are introduced[300] - Use of open source software in products and services poses risks to proprietary software and business operations[301] Customer and Reputation Risks - Unfavorable media coverage and negative customer experiences could harm the company's brand and reputation, affecting customer engagement and loyalty[135][137] - The company has faced significant media attention and customer complaints due to service outages and trading restrictions, which could diminish customer confidence[137] - Negative publicity surrounding PFOF or Transaction Rebate practices could harm the company's brand and reputation, potentially leading to customer disengagement[122][124] - The company's spending and payments products, including the Robinhood Cash Card, are subject to FDIC pass-through insurance risks and regulatory audits[284][286] - Offering Robinhood Credit increases exposure to customer defaults and credit risk, which could result in financial losses[288] - Spending and payments services are vulnerable to illegal activities, such as fraud and money laundering, which could lead to legal actions and reputational harm[289][291] Clearing and Credit Risks - The company provides clearing and execution services, with potential losses from customer defaults or errors in clearing functions[227][229] - The company is exposed to clearing member credit risk, with potential assessments from clearinghouses in the event of member defaults[230] - The company extends margin credit to customers, with risks from rapid market declines and potential customer defaults[231] - The company has an intra-day outstanding net receivable of $100 million from cryptocurrency market makers, exposing it to credit risk[232] - The company faces risks of funding transaction losses due to reversals or insufficient funds, potentially arising from fraud, misuse, or settlement delays[161] - The company's failure to limit returns, including fraudulent transactions, could lead to increased reserves, penalties, or termination of relationships with payment networks and banking partners[162]