Robinhood Reports $358 Million in Crypto Revenue, Shares Surge 13%

Robinhood (HOOD) shares rose 13% to $63.20 in pre-market trading following strong fourth-quarter earnings that surpassed Wall Street estimates, primarily due to a significant increase in crypto revenue.

Crypto transaction revenue reached $358 million, the highest to date.
Total revenue for the quarter was $1.01 billion, a 115% year-on-year increase.
Transaction-based earnings increased by 200%, driven by a 700% rise in cryptocurrency revenue.
JPMorgan raised its price target for Robinhood from $39 to $45; Citi increased its target from $45 to $60; Bernstein raised it from $51 to $105.
Crypto revenue typically contributes 10%-20% of total revenue; recent market conditions saw a 46% increase in total cryptocurrency market cap.
Future plans include adding more tokens, enhancing wallet functions, and integrating Bitstamp.
Citi noted ongoing positive trends in retail activity and crypto market dynamics.
Investors should anticipate volatility despite a generally favorable outlook.

Bernstein emphasized Robinhood as a top pick in digital assets, expecting continued momentum into the first quarter due to crypto volatility.