Morgan Stanley analysts predict that Robinhood Markets Inc. (NASDAQ:HOOD) will have a good year in the future, despite the fact the company has doubled its value over the last four months.
Michael Cyprys, HOOD’s CEO and founder, upgraded the stock to “overweight”. He said that the Trump administration will be a major beneficiary.
The price of Robinhood rose to $54 which indicates that there is potential for a further 50% increase.
What would drive the price of Robinhood stocks to increase in 2025?
Morgan Stanley believes that a potential deregulation of crypto markets under Donald Trump’s presidency will allow Robinhood to be more active in the market.
Analysts are bullish about the firm’s financial services, as they believe it will benefit from an expected recovery in mergers and acquisitions. A rise in initial public offering (IPOs), which is expected, may mean that HOOD will have a better retail trading environment in 2025.
Michael Cyprys said in a client note that “Revenue Growth looks better post-election, with retail trading boosting it as crypto support broadens and M&A opportunities open up. Animal spirits also revive.
Robinhood Stock is not attractive to income investors because it does not pay dividends at the time of writing.
HOOD diversifies its revenue sources
Robinhood announced recently that it plans to buy TradePMR, a company worth $300,000,000 in cash and stock.
This acquisition is expected to help the company expand its advisory services and provide significant flexibility for its online platform in the future.
The Morgan Stanley analyst wrote in a note Monday that “HOOD has clearly executed on its plans to expand its offerings and capture more wallet shares to increase its addressable market.”
Michael Cyprys believes that Robinhood’s stock has a significant upward trend. He is convinced that the fintech company will increase its profits at an annualised compound rate of 15%, reaching $4.0 billion in 2027.
Despite a huge year-to date rally, HOOD’s shares still trade at the price they were launched on in 2021.
Robinhood made a profit during its Q3 fiscal year
Robinhood Markets has also recently launched a desktop platform for trading, an online credit card and high-risk margin trades in the UK. Futures trading and index option trading have been added.
In its most recent quarter, the financial services firm fell short of Wall Street expectations. Morgan Stanley is still positive about this cryptocurrency stock, as the company made a profit during Q3.
HOOD’s third quarter saw 11 million active monthly users, and 2.2 millions gold subscribers – a 65% increase compared to last year. In Q3, the average revenue generated per user increased by 31%, to $105.
Michael Cyprys believes that Robinhood’s stock will be strong next year, not only because the management plans to expand offerings in 2025.
The post Buy This Crypto Stock for 50% Return in 2025 could be updated as new information becomes available
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