New Platform Features Will Get Robinhood Stock Back on Track

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Headquartered in Menlo Park, Calif., Robinhood Markets (NASDAQ:HOOD) provides a zero-commission investing platform known as Robinhood. Amazingly, HOOD stock popped around 30% from March 15 to 18, but there’s still more room to run — and to recover.

Robinhood stocks: app logo seen on smartphone on US dollar banknotes

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From Ark Invest’s Cathie Wood, to Millennial and Generation Z traders — and let’s not forget about Reddit users — Robinhood has been a favorite of new-generation financial-market participants practically everywhere.

On the other hand, when we look under the hood of HOOD stock, we can find some serious technical damage. The stock still has a whole lot of ground to cover in order to get back to its post-IPO high of $85.

This goal is achievable, though, as Robinhood’s platform isn’t just cost-efficient. Indeed, it’s also replete with new features to entice traders of all stripes.

What’s Happening With HOOD Stock?

It’s possible that investors turned against HOOD stock because the meme stock frenzy of early 2021 has faded.

Some of those meme stock lost much of their value, and some Robinhood platform users got burned. On top of that, SEC Chairman Gary Gensler has criticized Robinhood for its payment-for-order-flow business practice.

These factors likely contributed to HOOD stock’s decline, but the negative sentiment seems to be overstated. After all, the company is doing well from a financial standpoint.

Consider that, in the fourth quarter of 2021, Robinhood grew its revenue year-over-year by 14%. Even better, the company increased its full-year 2021 revenue by a whopping 89%.

Plus, here’s where the rubber really meets the road. Monthly active users (MAUs) are the lifeblood of any digital platform.

As it turns out, Robinhood grew its MAU count by 48% to 17.3 million for December 2021, versus 11.7 million for December 2020.

Still Innovating

Besides, it’s not as if Robinhood is allowing other brokers to take the lead in providing next-generation features. The company spearheaded the neo-trading movement, and is still on top of its game in 2022.

For instance, Robinhood recently revealed its plans to introduce a spending account feature along with a new cash card (to be called the Robinhood Cash Card) with rewards.

Clearly Robinhood wants to be more than just your average broker. Call it bribery or call it brilliant, but the Robinhood Cash Card will apparently provide weekly bonuses of 10% of 100% when users invest their spare change.

Furthermore, here’s a potential game changer. Robinhood, reportedly, is preparing to allow its users to loan out their stocks to other financial institutions. This is known as fully paid securities lending, and it could be available in the coming months.

It’s an interesting idea that could gain traction. According to developer Steve Moser, the users will be able to “earn passive income by lending whole shares of stocks to other institutions.”

And don’t worry — “You’ll be able to buy and sell as usual, even if your stocks are on loan,” Moser assures.

What You Can Do Now

As you can see, Robinhood has gone far beyond basic commission-free trading.

The company is still leading a huge movement. As an investor, you can either join or just watch from the sidelines.

If you’re on board with the trading revolution that’s gaining momentum, feel free to take a starter position in HOOD stock today.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/robinhoods-new-features-will-get-hood-stock-back-on-track/.

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