Robinhood’s (HOOD) evolution from meme stock trading champion to wealth management platform has been furious.
The company announced late Wednesday that it would start trading futures and index options on its app, a move that has been widely reported for months. Robinhood said both features will be coming to the Robinhood app “soon.”
The company also took the wraps off Robinhood Legend, which is being touted as a sophisticated trading platform targeted at more sophisticated investors. Robinhood Legend allows you to open up to 8 charts in one window, which has the potential to improve various technical indicators for traders, such as Bollinger Bands.
“Robinhood Legends, futures and index options enable our customers to harness the power of the markets and take control of their financial future,” said Vlad Tenev, co-founder and CEO of Robinhood. We are supporting it.”
The redesign and new product release follows a series of debuts and transformations in recent months.
Robinhood acquired cryptocurrency exchange Bitstamp in June, and in March targeted credit players American Express (AXP) and Visa (V) with a credit card offering 3% cash back on purchases. .
It finally debuted its stock trading app in the UK in November 2023, after launching 24-hour trading for select stocks and ETFs earlier that year.
“We don’t just serve active traders. We want to grow our customers’ wallet share. We want to help them build wealth,” Tenev said in a recent He told Yahoo Finance in an interview.
Investors are paying close attention to Robinhood’s transformation.
The company’s stock is up 110% since the beginning of the year as higher interest rates boost lender profits and improve sentiment around its innovation pipeline. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) rose 21% and 22% year over year, respectively.
The company reported second-quarter sales of $682 million, up 40% year over year. Net income was $0.21 per share, a significant improvement from $0.03 in the same period last year.
Not everyone on the street believes the company is maintaining its earnings momentum even as interest rates fall.
“We continue to see opportunities across the derivatives, gold and crypto product pipeline, although some of these products are in the early stages of development and implementation,” said JPMorgan analyst Ken Worthington. , its inherent earning power is unproven across the interest rate environment,” it warned in a message to customers. Note.
The analyst gives Robinhood an “underweight” rating, the equivalent of a “sell.”
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