When it comes to investing, Robinhood (NASDAQ: HOOD) has positioned itself as the easy-to-use, “cool” option. It has become the go-to investing platform for many Gen-Z and millennial investors. It hasn’t been all smooth sailing for Robinhood since its July 2021 initial public offering (IPO), but this past year has been a much-appreciated bounce back.
In the past year (through Dec. 3), Robinhood’s stock is up nearly 246%, meaning a $1,000 investment then would be worth close to $3,460 today.
Much of Robinhood’s recent impressive stock performance can be attributed to its impressive financial performance. In the third quarter (Q3), its revenue increased 100% year over year to $1.27 billion, and its net income (a profit measure) increased 271% to $556 million.
Robinhood’s recent financial performance shows it isn’t just a speculative growth company anymore. It’s a profitable company that’s showing signs of sustainability. Just two years ago, in Q3 2023, it lost $85 million, so this has been a fairly quick turnaround.
The company has also been expanding its business beyond stock buying. It now has its hand in prediction markets (though it faces legal pushback) and runs a cryptocurrency exchange called Bitstamp. Its stock platform will remain its bread and butter, but it’s good to see it trying to diversify its business a bit.
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
