- Robinhood stocks have jumped to record highs this year.
- The company has recently become one of the latest S&P 500 companies.
- There are concerns about the evaluation after the recent surge.
Robinhood's stock has been a strong uptrend this year, hovering at an all-time high as growth increases steam. Hood jumped to a high of $129.67, up 229% from where he began the year. So, after including the recent S&P 500 index, is it getting more profitable?
Why Robinhood's stock price has skyrocketed
There are several reasons why food stock prices have skyrocketed this year. First, the company has recently become one of its newest members. Exclusive S&P 500 index.
The company works well as many ETFs that track it after it is included in this index, so it does. Index companies also typically attract some fame over time.
Robinhood has also continued to fire on all cylinders this year as the volume of stocks, options and crypto industries rose. The latest results showed that revenues increased 45% to $539 million. This is driven primarily by the options market.
Revenue growth was also driven by the crypto segment, which increased 45% to $160 million. The acquisition of Bitstamp will help accelerate this growth.
Its net profit increased by 105% to $385 million, making it a highly profitable company. Robinhood's total platform assets also rose 99% to $279 billion.
Robinhood also continues to monetize its users well, with average revenue per user (ARPU) increasing by 34% to $151.
Third, the company continues to innovate this year, especially by being the first mainstream company to provide tokenized stocks to clients in Europe.
In line with this tokenization theme, the company is currently working on a standalone layer 2 platform on top of the Arbitrum network. This is a huge opportunity as it is a platform that is probably valued at billions of dollars when it launches tokens in 2026, as Coinbase demonstrated through the base.
Continuing growth, but there are still concerns about evaluation
Going forward, analysts are brightening up with revenue growth, with average revenue estimates for this quarter of $1.15 billion, an 80% increase from the same period last year. This growth is because this will be the first quarter with BitStamp revenue.
Analysts are hoping for that too Annual revenue This year, it rose 40% to $4.13 billion this year, reaching $4.8 billion next year. Robinhood's revenues will also accelerate, with EPS rising to $1.9 and $2.12 over the next two years.
However, there are basic and technical risks to remember. The most notable thing is what Robin Hood has Very overrated The company has earned one of the forward prices and return rates of 61, 61.7. These numbers are very large for companies in the financial services industry.
Another risk is historically that stocks will jump after being added to the S&P 500 index, and investors will then pull back after selling the news.
Food stocks are being bought
Technical, on the other hand, suggests that a pullback of the stock price of the food is guaranteed as it is much higher than the 50-day, 100-day, and 200-day index moving average (EMA). In most cases, businesses tend to withdraw and retest these averages.
The oscillators have also been purchased in a very high degree, moving their relative strength index (RSI) to 71, and the stochastic oscillators have risen to above 90. The RSI also formed a drop pattern.
Inventory has also moved to the top of the upward channel. This means that you can retest the bottom for $100.
