Robinhood Markets, Inc. (HOOD) saw its stock price reach all-time highs in October, reflecting its evolution from a stock-trading app to a significant player in the financial services industry, now listed on the S&P 500. The stock surged 650% over the past two years, despite a recent decline of nearly 50% from its recent peak.
As of now, Robinhood has expanded its business lines, each generating approximately $100 million in annual revenues. The company reported 3.9 million paid Gold subscribers in Q3, a 77% year-over-year increase. Its average revenue per user rose by 82% to $191, contributing to a quarterly sales jump of 100% year-over-year. Earnings per share increased by 259% to $0.61, surpassing earnings estimates for four consecutive quarters.
Looking ahead, Robinhood is projected to grow its adjusted earnings per share by 85% in 2025, reaching $2.48, compared to an expected loss of -$0.60 in 2023. The stock is currently trading around $75, with market analysts suggesting an average price target that indicates a potential upside of 86%.
