Futu Holdings Rises 1% Despite 27.85% Drop in Trading Volume to $680M Ranks 109th in Volume Amid Crypto/AI-Driven Growth and Record Net Income Surge

Futu Holdings (FUTU) rose 1.00% on August 21, 2025, with a trading volume of $680 million, down 27.85% from the prior day’s activity. The stock ranked 109th in trading volume among listed equities. Recent developments highlight the firm’s Q2 2025 financial performance, including a 69.7% year-over-year revenue increase to $676.6 million and a 105.2% surge in net income to $338.8 million. These results were driven by growth in funded accounts, wealth management assets, and expansion into cryptocurrency and AI initiatives.

Analysts have adjusted their outlook for Futu. BofA raised its price target to $172, citing strong asset inflows despite declining new client numbers, while Citi’s Judy Zhang increased her target to $176, linking the move to Hong Kong’s stablecoin regulatory developments and broader crypto interest. The firm’s Moomoo Crypto platform and AI-driven strategies are seen as key differentiators, contributing to a 112.7% annual net income boost and a 121.2% rise in trading volumes.

Client assets under management reached $124 billion, reflecting robust demand for Futu’s services. The company’s financial metrics, including a price-to-earnings ratio of 34.04 and a price-to-sales ratio of 15.63, underscore its valuation appeal. Strategic bets on crypto and AI are positioning Futu to capitalize on evolving market dynamics, though analysts caution that margin pressures and regulatory shifts could influence future performance.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 showed a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59%. The approach demonstrated steady returns but highlighted the need for risk management, particularly during the mid-2023 downturn, which saw significant volatility in the strategy’s value.