TLDR
- Robinhood stock has risen 413% over the past year, with trading volume for equities and cryptocurrencies up more than 100% year-over-year
- The company reports 26.7 million funded accounts with $304 billion in total platform assets, and average account values topped $10,000 for the first time
- Cathie Wood’s Ark Invest purchased $21.3 million worth of Robinhood shares through two ETFs ahead of the November 5 earnings report
- Analysts expect Robinhood to post earnings of 51-52 cents per share for Q3, with the stock showing 60% bullish sentiment in options trading
- Robinhood expanded its crypto presence by acquiring Bitstamp for $200 million and WonderFi for $180 million, plus launching tokenization services and prediction markets
Robinhood Markets closes in on its November 5 earnings report with strong momentum. The stock has climbed 413% over the past 12 months.
Cathie Wood’s Ark Invest made a $21.3 million bet on the company this week. The firm purchased 167,489 shares through its ARK Innovation and ARK Next Generation Internet ETFs at around $127.22 per share.
The timing looks strategic. Robinhood reports third-quarter earnings after market close on November 5.
Analysts project earnings of 51 to 52 cents per share. Revenue estimates sit at $1.19 billion for the quarter.
Options data from Nasdaq shows roughly 60% bullish sentiment on the stock. Institutional investors appear confident ahead of the report.
Trading Activity Surges Across Platform
The numbers tell a growth story. Robinhood now manages 26.7 million funded accounts with $304 billion in total platform assets.
Equities trading volume jumped 107% year-over-year to $199.2 billion in August. Cryptocurrency trading exploded 154% to $13.7 billion.
Options contracts rose 33% to $196 million. Total platform assets increased 112% from $144 billion to $303.9 billion.
Average account values crossed $10,000 for the first time in company history during the second quarter. This marks a key milestone for the platform.
Second-quarter revenue hit $989 million, up 45% from the previous year. Net income doubled to $386 million, a 105% increase.
Average revenue per user climbed 34% to $151. The company has beaten analyst earnings estimates in each of the last three quarters.
Fourth-quarter 2024 earnings came in at $1.01 per share versus estimates of $0.45. First-quarter 2025 delivered $0.37 against expectations of $0.33.
Second-quarter results showed $0.42 per share compared to the $0.31 consensus. The pattern suggests consistent outperformance.
New Products Drive Expansion
Robinhood launched asset tokenization in June, making over 200 stocks available to European Union customers. The program converts traditional assets into tradeable digital tokens on the blockchain.
Management called tokenization a “freight train” for future profits. The company plans to expand this service further.
Prediction markets went live in March. Users can bet on outcomes in sports, financial events like Federal Reserve decisions, and popular culture.
The platform charges $0.01 per contract. Nearly 100 million contracts traded in the second quarter, generating roughly $1 million in revenue.
Total trading volume on prediction markets approached $1 billion. Robinhood partnered with Kalshi in August to offer bets on college and professional football games.
Kalshi operates under Commodities Futures Trading Commission regulation. This partnership helps Robinhood navigate gambling laws.
The company acquired Bitstamp for $200 million in an all-cash deal finalized in June. The purchase provides access to over 50 crypto licenses across Europe, the UK, and Asia.
Johann Kerbrat, General Manager of Robinhood Crypto, explained the strategy. “They have products that we don’t have, like order books, crypto as a service, advanced API, and lending and staking.”
Robinhood bought Toronto-based WonderFi for $180 million in May. This acquisition establishes a position in the Canadian digital asset market.
The company also plans to develop its own Layer 2 blockchain on the Arbitrum network. The project aims to improve transaction efficiency and scalability.
Ark Invest has been building positions in companies at the intersection of crypto and traditional finance. The firm now holds 1,165,397 shares of crypto exchange Bullish, valued at $73.85 million.
Robinhood closed at $127.22 on Wednesday, up 3.5% for the day. Pre-market trading Thursday showed the stock at $128.40, a 0.93% gain.
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