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- 📈 $HOOD: Jumps 110% with a Legend to Match
📈 $HOOD: Jumps 110% with a Legend to Match
Robinhood stock jumps 110% YTD as new desktop platform 'Legend' drives record $682M revenue.
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HOOD: HOOD $26.97
This week, we're diving into Robinhood Markets, the fintech company that revolutionized commission-free trading. The stock has surged an impressive 110% this year, significantly outperforming the broader market.
From meme stock trading champion to a full-fledged wealth management platform, Robinhood is evolving rapidly. Let's explore what's driving this transformation! 🚀
Legend in the Making
Robinhood just unveiled "Legend," its new desktop trading platform targeting sophisticated investors. This sleek interface allows traders to view up to eight charts in a single window and access advanced technical indicators like Bollinger Bands. The platform brings powerful customization options and real-time data to serious traders, marking Robinhood's evolution beyond its mobile-first roots. With features like one-click trading and advanced charting tools, Legend positions Robinhood to compete with traditional brokerages for active traders. The timing couldn't be better - about half of the trading market is on desktop web, where traders need more screen real estate for sophisticated analysis. By addressing this market gap, Robinhood is positioning itself to capture a whole new segment of active traders who previously might have dismissed the platform as too basic. Additional Reading |  |
Expanding the Trading Universe
Robinhood is launching futures and index options trading on its mobile app, expanding its product lineup significantly. Traders will soon be able to trade S&P 500, oil, and Bitcoin futures with competitive pricing - Gold members pay just 50 cents per contract, while regular users pay 75 cents. The company is also introducing index options trading with fees as low as 35 cents per contract for Gold members. These new offerings demonstrate Robinhood's commitment to providing sophisticated trading tools while maintaining its signature low-cost approach. To ensure trader safety, Robinhood has bolstered its educational materials, including adding YouTube videos to its Learn portal. The company requires users to apply and receive approval before they can start trading futures, showing a commitment to responsible growth as it expands into more complex financial products. Additional Reading |  |
Growing Profitability
Robinhood's transformation is already showing results. The company reported Q2 revenue growth of 40% over last year to $682 million, with net earnings improving to $0.21 per share from $0.03 a year ago. With $139.7 billion in assets under custody and 11.8 million monthly active users, Robinhood has built a solid foundation for growth. The company's focus on operational efficiency has reduced operating expenses from 160% of revenues in Q1 2022 to just 60% in Q2 2024, showcasing improved profitability. The company isn't stopping there - it's actively expanding globally, having launched in the UK and Europe. It's also offering attractive incentives for new deposits, including bonuses of up to 3% for transfers initiated by October 27, showing its commitment to growing its asset base and market share. Additional Reading |  |
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Major Market News
Source: Canva
Wednesday, October 23rd - Fed Beige Book
What: Analyzes current economic conditions across all 12 Federal Reserve districts through interviews with businesses.
Impact: This is a crucial economic signal as the Fed uses this real-world feedback to shape rate decisions. It shows how businesses are handling higher rates, wage pressures, and pricing decisions, helping predict upcoming Fed moves.
Source: Federal Reserve
Thursday, October 24th - Initial Jobless Claims
What: Measures the number of people filing for unemployment benefits for the first time.
Impact: This is a key economic signal as it provides our most current look at job market health. A rise to 245,000 from 241,000 claims suggests layoffs are increasing, which could influence Fed's rate decisions as employment strength has kept them hawkish.
Source: U.S. Department of Labor
Friday, October 25th - Durable Goods Orders
What: Tracks new orders for long-lasting manufactured products like machinery and vehicles.
Impact: This is a significant economic signal as durable goods show business confidence. The expected -1.0% drop suggests companies are pulling back spending due to high rates, which could signal broader economic slowdown.
Source: U.S. Census Bureau
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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.