Will Interest Rate Cuts Hurt Robinhood and Halt HOOD Stock Rally?

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 ...