Despite opening strong, Robinhood (NASDAQ:HOOD) stock has dipped just slightly into the red this morning. Yesterday, after the market closed, the securities broker reported stronger-than-expected second-quarter results. So, this morning’s negative sentiments aside, here are five reasons for HOOD stock owners to feel bullish about the company’s Q2 performance:
- The firm’s top and bottom lines came in meaningfully above analysts’ average estimates. Specifically, it generated Q2 revenue of $682 million, versus analysts’ mean estimate of $643 million, and it reported earnings per share of 21 cents, compared with the average estimate of 15 cents.
- The company’s transaction-based revenue soared 69% compared to the same period a year earlier to $327 million.
- Robinhood’s net income jumped seven times year-over-year to $188 million.
- On the user base front, the firm’s funded customers rose by a net total of 1 million compared with the same period a year earlier.
- Robinhood’s quarterly revenue and EPS set new all-time records.
The Outlook of HOOD Stock
Encouragingly, Robinhood reported that its trading volumes had surged over 20% in July versus June, while August had also gotten off to a strong start with a $1 billion increase in its net deposits. Consequently, it does not appear that the firm has been negatively affected by the volatility of the stock market in recent weeks.
Also boding well for the shares is the fintech’s announcement of a $1 billion repurchase authorization of HOOD stock. The company began buying back its shares under that reauthorization in July.
Finally, Robinhood Gold, its subscription service, appears to be growing rapidly and looks likely to become a needle mover for the company. That’s because, in Q2, the number of Robinhood Gold subscribers jumped 61% year-over-year to a record 2 million.
The shares have sunk 22% over the last month, but they have jumped 34% so far in 2024.
On the date of publication, Larry Ramer did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
