Robinhood's revenue doubled in the third quarter.
Robinhood has shown signs of sustained profitability.
Prediction markets and its cryptocurrency exchange have been high-growth areas for Robinhood.
When it comes to investing, Robinhood (NASDAQ: HOOD) has positioned itself as the easy-to-use, "cool" option. It has become the go-to investing platform for many Gen-Z and millennial investors. It hasn't been all smooth sailing for Robinhood since its July 2021 initial public offering (IPO), but this past year has been a much-appreciated bounce back.
In the past year (through Dec. 3), Robinhood's stock is up nearly 246%, meaning a $1,000 investment then would be worth close to $3,460 today.
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HOOD data by YCharts
Much of Robinhood's recent impressive stock performance can be attributed to its impressive financial performance. In the third quarter (Q3), its revenue increased 100% year over year to $1.27 billion, and its net income (a profit measure) increased 271% to $556 million.
Robinhood's recent financial performance shows it isn't just a speculative growth company anymore. It's a profitable company that's showing signs of sustainability. Just two years ago, in Q3 2023, it lost $85 million, so this has been a fairly quick turnaround.
The company has also been expanding its business beyond stock buying. It now has its hand in prediction markets (though it faces legal pushback) and runs a cryptocurrency exchange called Bitstamp. Its stock platform will remain its bread and butter, but it's good to see it trying to diversify its business a bit.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.