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- 📈 $HOOD - 14% Bump in Trading Volume
📈 $HOOD - 14% Bump in Trading Volume
Robinhood's stock has been on a wild ride, moving 50.4% since 2023 and 6% in March alone following the launch of their game-changing Gold Card metal card. With a 12-month price target ranging from $11 to $30, this stock could move even more with the recent news.
Happy April everyone, hope y’all had a good March and are ready for much longer days 🙂.
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
$HOOD: Robinhood $20.13
Our featured stock of the week is Robinhood.
Robinhood's stock has been on a wild ride, moving 50.4% since 2023 and 6% in March alone following the launch of their game-changing Gold Card metal card. With a 12-month price target ranging from $11 to $30, this stock could move even more with the recent news.
Credit As A New Revenue Source
Robinhood unveiled The Robinhood Gold Card late last Tuesday (March 26th). The card expands the companies offering beyond just stock trading to credit which could be a great new source of revenue. Robinhood has seen 40% year-on-year growth of their margin lending product -which allows for people to borrow money to trade stocks. Robinhood could see a meaningful number of users utilize the card. Additional Reading: |  |
Increasing Trade Volume
During it’s last earnings call, Robinhood noted a 14% increase in stock trading volume. This is meaningful as fees from trading is how Robinhood makes most of its money. The platform has also recently opened up trading and crypto in the fourth largest stock investment market -the United Kingdom. Robinhood's expansion into the UK will likely increase the company's trading revenue. Over $1.3B in stocks and assets was moved to Robinhood from other brokerages in 2023. Its clear that stock investors are excited to trade on the platform. Additional Reading: |  |
Major Market News
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Friday, March 29th – Advance U.S. Economic Indicators Report
What: Analyzes the United States' international trade in goods
Impact: The trade deficit measures the gap between a country's exports and imports. Ideally, countries strive to export more than they import as it likely means the country makes more money from selling goods to other countries than they spend on purchasing goods from other countries.
The U.S. trade deficit has been going up which isn’t a good economic sign. A growing deficit is likely a bad economic signal as it may mean that the US either lacks the talent, materials etc to make the goods domestically or that the cost to do so is too high.
Source: Census Gov
Monday, April 1st – The U.S. Manufacturing Purchasing Managers' Index
What: Purchasing managers buy raw materials, goods and services to make all of the things that factories end up making. This report examines the activity of purchasing managers in the U.S. manufacturing landscape.
Impact: The U.S. manufacturing sector's February reading crossed the 50 margin, indicating a growing economy as goods made my factories are in demand. The March PMI report will be published on April 1st and will likely provide insights into the purchasing manager's activity and economic effects.
Source: PMI S&P Global
Tuesday, April 2nd – New Job Openings
What: Measures employment opportunities and labor turnover
Impact: The U.S. Bureau of Labor Statistics will measure job vacancies in the upcoming month. A growing number of job openings will likely strengthen the U.S. job market.
Source: Bureau of Labor Statistics
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A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of profit is made. In fact, you may lose your entire investment. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.