Can HOOD sustain its earnings momentum in 2025?

**Robinhood Markets (HOOD) is poised to sustain its earnings momentum in 2025**, considering the following factors:

1. **Strong Financial Performance**: HOOD's recent financial results are impressive, with a net income of $916 million and total revenue of $1.01 billion in the fourth quarter of 2024. The company's diluted EPS grew by 3266.67%, indicating a robust profitability trend.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|HOOD|HOOD.O|Robinhood Markets|2024 Q1|6.18E8|1.57E8|0.18|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q2|6.82E8|1.88E8|0.21|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q3|6.37E8|1.5E8|0.17|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q4|1.014E9|9.16E8|1.01|185|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|HOOD|HOOD.O|Robinhood Markets|2024 Q1|130.72407045009783|40.136054421768705|131.57894736842107|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q2|652|40.32921810699588|600|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q3|276.4705882352941|36.402569593147746|288.8888888888889|185|
|HOOD|HOOD.O|Robinhood Markets|2024 Q4|2953.3333333333335|115.28662420382165|3266.6666666666665|185|

2. **Business Expansion and Innovation**: Robinhood has been actively expanding its product offerings and market reach. The addition of a prediction markets hub and the acquisition of TradePMR are strategic moves that are likely to contribute to its growth trajectory.
3. **Market Sentiment and Analyst Ratings**: The consensus rating for HOOD is "Buy" with an average analyst price target of $63.38, suggesting that analysts are optimistic about the company's future performance.
4. **Regulatory Challenges**: While Robinhood is facing regulatory probes in Massachusetts over its prediction markets feature, the company has stated that its contracts are regulated and compliant with existing regulations. This may pose some risks, but it does not necessarily preclude the company from sustaining its earnings momentum.
5. **Shareholder Value and Repurchases**: Robinhood has been actively repurchasing shares, with over 5 million shares repurchased, which can boost investor confidence and reflect the company's financial strength.
6. **Historical Performance and Growth Prospects**: Robinhood has demonstrated strong growth in recent years, with a remarkable total shareholder return of 277.52% over the past three years. The company's revenue is projected to increase from $1,865 million in 2023 to $2,975 million in 2026, indicating a positive growth outlook.

In conclusion, while there are regulatory challenges to consider, HOOD's strong financial performance, business expansion, positive market sentiment, and shareholder value initiatives suggest that the company is well-positioned to sustain its earnings momentum in 2025.