Yahoo Finance has named Robinhood Markets (HOOD) the stock of the year for 2024. The company, led by Vlad Tenev, saw its stock surge over 190% after boosting its profitability and expanding its portfolio.
Key Facts
According to senior analyst Patrick Molly from Piper Sandler, Robinhood Markets’ growth is just beginning. The reason? 75% of Robinhood’s customer base consists of young people who are more inclined to try new products, driving further growth for the company. One of the key drivers of growth over the past year has been Robinhood’s new web-based trading platform, which opens access to 50% of the retail market that was previously unavailable to users.
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Key Number
$32.94 billion — Robinhood’s market capitalization. The company’s shares are currently trading at $37.26.
Key Story
Vlad Tenev has become one of the billionaires whose wealth soared following Donald Trump’s election victory. Robinhood’s stock rose nearly 20% after the election results, boosting Tenev’s wealth by almost $300 million, reaching $1.9 billion. According to Forbes, his current net worth stands at $2.3 billion.
Robinhood has introduced several new products and launched margin trading in the UK in 2024. The company also debuted a securities lending product in the UK last September, allowing users to earn passive income from their stock holdings. Additionally, Robinhood began offering EU customers the ability to transfer cryptocurrencies to and from its platform.
What is Robinhood?
Robinhood is an online brokerage that offers commission-free services, allowing users to buy and sell stocks, cryptocurrencies, and other assets. The company was founded in 2013 by Vlad Tenev and Baiju Bhatt with the mission to democratize finance, making financial services more accessible to the general public.
What’s Next?
In June, Robinhood announced its acquisition of Luxembourg-based crypto platform Bitstamp to leverage the company’s exchange technology and expand its global presence. The deal, valued at around $200 million, is expected to close in the first half of 2025.
