The actions of Robinhood (Hood) increased in pre-commercial activity Thursday after the popular trading application published profits in the fourth quarter which beat the estimates of Wall Street, fired by a massive leap in crypto income.
The company said $ 358 million in cryptographic transaction income during the quarter, the largest contribution of Digital-Asset Trading to date, Wall Street Bank Jpmorgan (JPM) said in a research report.
JPMorgan has increased its course for action at $ 45, against $ 39, while retaining its neutral rating. Citi (C) increased its objective to $ 60, compared to $ 45 and maintained its neutral note on the stock. Bernstein broker has more than doubled the price target at $ 105 of $ 51 and has maintained an outperformance note on shares.
The title jumped from 13% to $ 63.20 at the start of negotiations Thursday after the results, published after the market closed on Wednesday.
Robinhood said the fourth quarter revenues increased 115% from the previous year to $ 1.01 billion, beating Wall Street’s analysts of $ 945.8 million, according to FactSet Data. Transaction-based profits increased 200% in annual shift, mainly due to a 700% increase in cryptocurrency income.
Cryptographic income normally contributes 10% to 20% of total turnover, noted JPMorgan. The leap of 46% of the total market capitalization of cryptocurrency during the period and the increase in notional volumes of Robinhood, which were 393% higher in the district, fueled the beat of income.
The company has major projects for its crypto business. “Management seeks to add more tokens, to strengthen its portfolio offer, to add a command book with exchange routing, to integrate bitstamp and to explore tokenization in the longer term,” said the report.
Robinhood has benefited from favorable trends since the start of the year, with “Citipo Market Tailwends and Retail Activity remaining,” said Citi.
If this positive backdrop is maintained, the actions are likely to see support, but investors should expect volatility. Although the bank has become more positive on the fundamental prospects of the company, it said that it preferred to wait for a “more reasonable entry point”.
Bernstein reiterated that Robinhood was the best idea of the global coverage of digital assets of the broker. He said he expected continuous momentum in the first quarter “driven by the volatility of cryptography and a sustained price cycle”.
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