Is Robinhood About To Take Off? 👀

9 Jan

Hey everyone!

It's been a busy start to the new year, as a number of popular stocks have been making new highs. In case you've been hiding under a rock, you can see examples of this action in NVDA and ANET - or any of the large banks in the Financial sector like JPM

But, if you're like us, then it's likely that you want to get into the next move before it happens, not after it's already made the rest of the market rich.

That's why we're looking at Robinhood. Getting into the stock right now might be the way to go, because the company is set to announce a number of new products which promise to re-invigorate customer and investor interest in the company. Here's what's coming down the pike:

International Expansion - UK Equity Offering 📈
Robinhood is set to launch its equity offering in the UK, marking its first international expansion. This move is significant as international retail brokerage faces less pressure compared to the U.S., offering a potentially less competitive market. With a modular approach to expanding globally, Robinhood aims to leverage its platform for faster launches in multiple jurisdictions, potentially making international business a substantial part of its total revenue.

Crypto Offering in the EU 📈
In addition to the UK launch, Robinhood is extending its Crypto offering to the EU. This move not only taps into the growing interest in cryptocurrency but also allows the company to refine its international strategy with relatively low risk to its core U.S. business. With the global interest in digital assets, this expansion could contribute to Robinhood's revenue diversification.

Credit Card Offering within Robinhood Gold 📈
Robinhood is gearing up to launch a Credit Card offering built into its subscription membership program, Robinhood Gold. The integration of the credit card into the membership strengthens the moat around the program. The CEO's optimism and the anticipated scale of Robinhood's customer base suggest that this new product could contribute to the momentum of Robinhood Gold, offering potential growth opportunities.

Futures Launch in 2024 📈
Looking ahead, Robinhood plans to launch futures trading in 2024. The CEO sees this as a potential nine-figure revenue business. A well-designed futures product, especially on mobile, could open up new revenue streams for Robinhood. The move into futures trading not only provides a new source of income but also positions Robinhood as a more sophisticated platform, potentially changing perceptions among professional traders - something that could bring more revenue in tangentially.

It's true that the company is only breakeven for the time being, but things have improved significantly since IPO, when Dogecoin trading made up nearly 6% of total revenue:



As the company begins to launch new products, we think it could follow in the footsteps of COIN, which has also seen a big run out of the doldrums.

Keep your eyes on this one; we think it looks like a great buy if it manages to breakout of its current range.

Cheers!

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