Robinhood’s Rally: Is Global Expansion the Next Big Catalyst?

Robinhood's Rally: Is Global Expansion The Next Big Catalyst?

One of many hottest big-name shares over the past 52 weeks has been Robinhood Markets NASDAQ: HOOD. As of the Mar. 4 shut, Robinhood shares are up over 178%. The investing platform that’s fashionable with youthful customers has considerably reinvented itself. It has gone from a meme stock to a extremely related funding platform.

Robinhood Markets Right this moment

Robinhood Markets, Inc. stock logo
HOODHOOD 90-day performance

Robinhood Markets

$48.12 +1.90 (+4.11%)

As of 03/5/2025 04:00 PM Jap

52-Week Vary
$13.98

$66.91

P/E Ratio
30.65

Value Goal
$60.13

Add to Watchlist

Other than crypto trading, retirement accounts and the Gold Subscription plan have been robust development drivers. Curiosity earnings development has additionally performed a key position.

Nonetheless, given the large uptick within the financial company’s share worth, it is very important study areas the place Robinhood is trying to drive future development. The corporate is making a big push into worldwide markets for enlargement.

Under is an evaluation of the potential of this chance and Robinhood’s potential to execute it.

Robinhood’s World Growth: How the Investing Big Is Scaling Past the U.S.

Robinhood has begun its worldwide enlargement in the UK (U.Ok.) and Europe, now holding over 100,000 non-U.S.-funded accounts—lower than 0.5% of its complete buyer base. This highlights the early stage of its international development and the numerous alternative forward.

Nevertheless, it additionally introduces danger as the corporate must compete with extra established gamers in these international markets.

The agency has additionally picked Singapore because the nation the place it is going to base its operations to broaden into the Asia-Pacific (APAC) market. The corporate goals to develop its worldwide attain to thousands and thousands after which to tens of thousands and thousands of shoppers.

Bitstamp: A Sport-Changer in Robinhood’s Worldwide Progress Technique

Robinhood’s technique for worldwide enlargement could quickly be getting a shot within the arm. In Jun. 2024, the corporate introduced plans to acquire Bitstamp. This acquisition is on monitor to shut by Jun. 2025. Bitstamp is the world’s longest-running cryptocurrency trade and has key licenses and registrations in Europe, the U.Ok., and Asia. 

That is essential, because it helps bypass among the time-consuming legwork that Robinhood must undergo to get these licenses itself. Additionally, the agency has over 5 million customers. This might help shortly increase Robinhood’s worldwide attain. Over time, Robinhood can add extra companies like these it already has in the US to spice up its worldwide income per consumer.

Kaiko Research reports that Bitstamp held the fourth spot in euro-denominated crypto quantity in November 2024, with an 8% market share. So, the transaction helps Robinhood acquire a notable foothold on this market. The acquisition additionally helps Robinhood enter the institutional crypto market. Robinhood focuses completely on retail buyers.

In distinction, Bitstamp serves each retail and institutional purchasers. Robinhood has $12.3 billion in money and equivalents on its stability sheet. The corporate can simply take in the simply $200 million money worth it’s paying for Bitstamp. Given the comparatively low price of this deal versus the potential advantages, this looks as if a sensible selection for Robinhood.

Nonetheless, it is essential to notice that euro-denominated crypto buying and selling quantity is just about 15% of U.S. greenback (USD) denominated quantity. Euro-denominated volumes grew by 116% from Jan. 2024 to Nov. 2024. Though that is very robust, it lags behind the 192% development for USD-denominated quantity.

Might Robinhood’s Worldwide Growth Drive Future Inventory Good points?

Robinhood Markets Inventory Forecast Right this moment

12-Month Inventory Value Forecast:
$60.13
24.95% UpsideAverage Purchase
Based mostly on 17 Analyst Scores
Excessive Forecast $90.00
Common Forecast $60.13
Low Forecast $29.00

Robinhood Markets Stock Forecast Details

Specializing in Robinhood’s enlargement within the EU, there may be vital purpose for optimism but in addition dangers to think about. Coming into this new market provides vital potential for development. Getting the Bitstamp acquisition authorized will make this entrance a lot smoother.

Nevertheless, the euro-denominated crypto market is notably smaller than the U.S. market and is rising extra slowly. The EU has stricter crypto guidelines than the US. This might add further prices for Robinhood and may affect the enterprise’s total profitability.

Nonetheless, Robinhood’s EU enlargement has the potential to be solidly accretive to the enterprise in late 2025 and past. Nevertheless, the approval of the Bitstamp buy is essential to reaching success. That is moreover true as Robinhood seems to broaden into the APAC area afterward.

Crypto buying and selling in Asian currencies represents a far bigger market than Europe. General, the completion of the Bitstamp transaction and the worldwide prospects it will probably carry might be an essential catalyst that gives a lift to the inventory later in 2025.

Earlier than you take into account Robinhood Markets, you will need to hear this.

MarketBeat retains monitor of Wall Road’s top-rated and greatest performing analysis analysts and the shares they suggest to their purchasers each day. MarketBeat has recognized the five stocks that high analysts are quietly whispering to their purchasers to purchase now earlier than the broader market catches on… and Robinhood Markets wasn’t on the listing.

Whereas Robinhood Markets at the moment has a Average Purchase score amongst analysts, top-rated analysts consider these 5 shares are higher buys.

View The Five Stocks Here

2025 Gold Forecast: A Perfect Storm for Demand Cover

Unlock the timeless worth of gold with our unique 2025 Gold Forecasting Report. Discover why gold stays the final word funding for safeguarding wealth in opposition to inflation, financial shifts, and international uncertainties. Whether or not you are planning for future generations or looking for a dependable asset in turbulent occasions, this report is your important information to creating knowledgeable choices.

Get This Free Report

Like this text? Share it with a colleague.

Hyperlink copied to clipboard.

Přejít nahoru