📈 Bullish Alert: Robinhood (HOOD)

Trade Idea: Buy HOOD up to $20

We believe this stock could gain by more than 125% within the next two years.

*ON ALL TRADES, it is important to use proper risk management to correctly allocate and protect your capital. 

HOOD Pounces on a Crypto Bull Market with Card Launch

Swans Say: Robinhood mentions and website traffic are spiking while traditional brokerage platforms experience weaker demand. This fits with our thinking that rising consumer interest in digital wallets, blockchain technology, and cryptocurrency will make 2024 ‘The Year of Defi’. With DeFi interest soaring and disruptive products getting launched, we think this former $85 stock has lots of room to run over the next couple of years.

The DeFi shift is accelerating: Consumers are increasingly embracing Decentralized Finance (DeFi) apps that enable peer-to-peer financial transactions and leave out institutional intermediaries. The SEC approval of spot Bitcoin ETFs, a surge in staking, and above-Treasury DeFi yields reflect a rapidly maturing market ripe for continued innovation.

Return of the retail trader: Upward trending capital markets have sparked renewed interest in equity, options, and crypto trading among individual investors. Record high Bitcoin prices above $70k are driving intense crypto trading activity by both existing and new HOOD users.

Robinhood’s recent monthly metrics are phenomenal: This month, the company announced that February 2024 assets under custody accelerated 16% MoM to $118.7 billion, quarter-to-date net deposits have already set a record high, and that traders were the most active they’ve been since January 2022. With Wall Street predicting a “monster” 2024-2025 crypto cycle, increased customer engagement could drive stellar growth and market share gains.

There is a ton of buzz around Gold Card: HOOD mentions and web visits are surging in reaction to a new 3% cashback credit card with no annual or foreign transaction fees. Initially for Gold customers only, the 10-karat gold Visa card has some of the best rewards in the industry and is expected to be rolled out more broadly this year. The offering could mark a big step in Robinhood’s goal of becoming a one-stop financial services shop.

Recent and Upcoming Events

23Q4 Earnings: February 13, 2024 – HOOD shares jumped 14% after the company’s last earnings release that included better than expected revenue growth and a surprise profit.

HOOD is expected to announce 24Q1 earnings in May.