Robinhood Shares Gain

last updated on

Robinhood Shares Gain

Robinhood Shares Gain 5% On Bofa Rating Upgrade

Bank of America (BofA) has upgraded the rating for the online trading platform Robinhood (HOOD). This enabled the Robinhood shares to gain around 5% during Friday's premarket trading session.

The Bank of America has changed the rating from 'underperform' to 'buy'. This is a sign that BofA believes that Robinhood has all the fundamentals needed to attract more organic growth and retail investors.

In the words of the BofA, the valuation of Robinhood (HOOD) is attractive as the company has revised its quarterly earnings.

Robinhood Quarterly Earnings Beat Estimates

week ago, Robinhood posted its quarterly earnings as well as its net revenues. Pretty much all of the values and indicators were above the forecasts. According to experts, the improvement in earnings and revenue is due to the high crypto trading volumes caused by the exchange.

Back in the day, Robinhood gained fame as it allowed people to trade via its online trading platform. At the peak of COVID-19, people were stuck at home, and Robinhood presented itself as the ideal platform for investing.

It isn't entirely wrong to say that 2021 was the peak of retail engagement as a large number of retail investors joined the markets.

Given the current numbers posted by Robinhood, BofA added that a new bull market appeared in the cryptocurrency market. At the same time, there are many metrics that hint at positive development for Robinhood in 2025 and 2026.

Meanwhile, Coinbase rating was also upgraded by the BofA analysts from underperform to 'neutral'. The reason for the rating upgrade is the cost-cutting initiatives taken by the crypto exchange along with a more preferable macro environment.

Another thing that is positive for Robinhood is a resurgence of the bull trend in Gamespot & other stocks. Since a lot of the Reddit users rely on Robinhood, it also means more active users & even new investors for the trading platform.

Trending Stories