Robinhood Now Runs 13 Revenue Lines Above $100 Million a Year. A 2-Month-Old Network Could Be Next.
Wall Street's new price targets lean on a diversification story. The company's own filings mostly back it up.
Robinhood's stock surged about 15% on Thursday, reaching approximately $123 per share. This came after several bullish analyst notes and a record day for the company's newly launched blockchain network, Robinhood Chain. Morgan Stanley recently upgraded the stock to "overweight" and raised its price target to $150 from $124. Analyst Michael Cyprys highlighted Robinhood's expanding product lineup, which is driving more activity and revenue per customer.
The company now operates 13 separate business lines, each generating $100 million or more in annualized revenue. These lines encompass options, event contracts, cryptocurrencies, equities, interest-based services, Gold subscriptions, proxy services, and two catch-all "other" buckets. Robinhood Chain, the company's blockchain network for real-world assets, went live on July 1, just one day after the second quarter ended.
On its first day of operation, the network generated a record $3.8 million in fees and has since collected over $179 million annually. While the network's revenue is significant, it still represents only about 2% of the company's total revenue, which is roughly $5.2 billion. Robinhood's equities and options lines still generate around 36% of the company's revenue, and both are growing steadily.
Cryptocurrency trading revenue has declined, while event contracts and margin interest have increased significantly. Despite the company's strong financial performance and growth prospects, there is a valuation premium compared to its peers, and some analysts recommend holding the stock rather than actively buying it.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
