Share this article
Booming Crypto Trading Powers Robinhood Earnings Beat, Analysts Raise Targets
Robinhoood shares jumped 13% in early trading Thursday after fourth-quarter earnings beat estimates.
Feb 13, 2025, 12:03 p.m.
What to know:
- Robinhood shares jumped 13% in early trading Thursday after fourth-quarter results surprised to the upside.
- JPMorgan, Citi and Bernstein all raised their price targets for the stock.
- The popular trading app reported $358 million in crypto transaction revenue in the quarter, its highest contribution from digital assets so far, JPMorgan noted.
Robinhood (HOOD) shares surged in pre-market activity Thursday after the popular trading app reported fourth-quarter earnings that beat Wall Street estimates driven by a massive jump in crypto revenue.
The company reported $358 million in crypto transaction revenue in the quarter, the highest contribution from digital-asset trading to date, Wall Street bank JPMorgan (JPM) said in a research report Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
JPMorgan raised its price target for the stock to $45 from $39, while maintaining its neutral rating. Citi (C) raised its target to $60 from $45 and kept its neutral rating on the stock. Broker Bernstein more than doubled it price objective to $105 from $51 and kept an outperform rating on the shares.
The stock jumped 13% to $63.20 in early trading Thursday following results, released after the market closed on Wednesdy.
Robinhood said fourth-quarter revenue rose 115% from the previous year to $1.01 billion, beating Wall Street analysts' estimate of $945.8 million, according to FactSet data. Transaction-based earnings increased 200% year-on-year, mainly due to a 700% rise in cryptocurrency revenue.
Crypto revenue normally contributes 10%-20% of total revenue, JPMorgan noted. The 46% jump in total cryptocurrency market cap in the period and the increase in Robinhood notional volumes, which were 393% higher quarter-on-quarter, fueled the revenue beat.
The company has big plans for its crypto business. "Management seeks to add more tokens, strengthen its wallet offering, add an order book with exchange routing functionality, integrate Bitstamp and explore tokenization longer-term," the report said.
Robinhood has benefitted from favorable trends since the start of the year, with "crypto market tailwinds and retail activity remaining strong," Citi said.
If this positive backdrop is maintained, the shares are likely to see support, but investors should expect volatility. While the bank has become more positive on the company's fundamental outlook, it said it preferred to wait for a "more reasonable entry point."
Bernstein reiterated that Robinhood was the best idea in the broker's global digital assets coverage. It said it expected continued momentum in the first quarter "driven by crypto volatility and a sustained price cycle."
Read more: Robinhood's Big Earnings Beat Could Bode Well for Coinbase
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin's squeeze sets stage for major price swing
BTC's volatility bands have compressed to levels that have historically paved the way for a renewed price turbulence.
What to know:
- Bitcoin's price has been stable between $85,000 and $90,000 for two weeks, leading to a Bollinger Bands squeeze.
- The Bollinger Bands squeeze suggests a potential for significant price movement soon.
- Historical patterns show that such squeezes often precede major price swings.
Top Stories
