Robinhood Stock Surges 200% to Record High on Crypto Growth and Trading Volume

Robinhood’s stock price has surged for nine consecutive weeks, reaching its highest level on record. The company's ticker symbol, HOOD, rose to nearly $92, marking a 200% increase from its April lows and a 1,042% rise from its lowest point in 2023. This surge has propelled Robinhood's market capitalization to over $77 billion.

The upward trajectory of HOOD stock aligns with the recent performance of the U.S. equities market, where the Nasdaq 100 and S&P 500 have reached all-time highs. Higher stock prices typically lead to increased trading volume for brokerage companies like Robinhood and Schwab, contributing to their growth.

Robinhood's shares have also benefited from its expanding presence in the crypto market, where it has established itself as a major player. The company recently acquired Bitstamp, whose 24-hour volume jumped to nearly $200 million, further solidifying its position in the digital asset space.

The most recent earnings results highlighted Robinhood’s growing customer base. Funded customer accounts rose to 25.8 million, up from 23.9 million during the same period last year. Gold subscribers increased to 3.19 million from 1.68 million in 2024, indicating a significant rise in premium service adoption.

Additional data revealed that total platform assets increased to $221 billion, while net deposits rose by $18 billion. This growth translated into quarterly revenue of $918 million, up from $618 million in Q1 2024, showcasing the company's financial strength and market momentum.

Analysts anticipate that Robinhood’s growth will continue. The average revenue estimate for the current quarter stands at $891 million, a 30% year-over-year increase. Annual revenue is expected to grow by 23% to $3.6 billion, followed by $4.24 billion next year, according to the analyst's forecast.

Management aims to accelerate this growth by rolling out its banking solutions, expanding internationally, and innovating through the launch of tokenized products. These strategic initiatives are designed to further enhance Robinhood's market position and revenue streams.

However, there are risks associated with the company's current valuation. Robinhood appears significantly overvalued, with a price-to-earnings ratio of 56, well above the sector median of 10. The stock is also trading above the average analyst price estimate of $70.38, raising concerns about potential overvaluation.

The daily chart shows that HOOD stock has been in a strong bull run and is now hovering near its all-time high. It has jumped above a key resistance level at $67, the highest swing from February. The Relative Strength Index has climbed above the overbought threshold, while the Average Directional Index has reached 40, an indication that the bullish trend is strengthening.

The stock has remained above its 50-day and 100-day Exponential Moving Averages. Currently, it is trading approximately 32% above the 50-day EMA. HOOD may undergo a mean reversion and potentially retest support at $67, which aligns with both the 50-day EMA and the previous February high.