Brokerage firm KBW released a report stating that the stock rating for Robinhood, a stock and cryptocurrency trading platform, is "in line with the market," with a target stock price of $20. KBW stated that with the acceleration of retail business, Robinhood's stock price has risen 150% in just four months, and the biggest issue is how long this recent growth will continue.

Robinhood stocks rose 12% in pre-market trading to $19.23, after the platform reported a significant increase in trading volume in February. In the latest report after Wednesday's close, the company stated that trading activity for all asset classes had increased compared to January, with stock trading volume jumping 36% to $80.9 billion, options contract trading volume increasing 12% to $1.191 billion, and cryptocurrency trading volume increasing 10% to $6.5 billion. As of the end of February, the platform's total assets under custody increased 16% to $118.7 billion compared to January.

Bernstein has given Robinhood an outperform rating and a $30 price target, citing the expected growth of the total crypto market cap to $7.5 trillion by 2025. The broker predicts that bitcoin spot ETF assets under management could reach $300 billion by 2025. Bernstein believes that Robinhood's crypto revenue could grow ninefold due to the "monster" crypto cycle. Robinhood reported a 10% increase in crypto trading volume on its platform in February compared to January. The broker sees Robinhood as a two-year cyclical trade that will benefit from the crypto-led earnings inflection over 2024-25.

On February 14th, Robinhood's cryptocurrency trading revenue in the fourth quarter of 2023 increased by 10% year-on-year to reach $43 million due to an increase in cryptocurrency trading users. FactSet data shows that the overall revenue of the trading platform in the fourth quarter was $471 million, exceeding analysts' average expectations of $454.7 million. At the same time, earnings per share were $0.03, exceeding the expected loss per share of $0.01.

Steve Quirk, the Chief Broker of Robinhood, stated that one-third of buyers sold their shares to rebalance their investment portfolios, and 20% of purchases/sales occurred in retirement accounts when discussing user behavior regarding BTC ETFs. Most sellers of GBTC transferred their funds to another Bitcoin spot ETF.

Steve Quirk, Chief Brokerage Officer of Robinhood, stated in an interview that he observed the behavior of traders in the current Bitcoin spot ETF market, which includes:

Market data shows that US stock digital currency concept stocks are rising, with Robinhood (HOOD.O) up more than 8% during trading, Coinbase (COIN.O) up more than 3%, and MicroStrategy (MSTR.O) up nearly 3%.

 Robinhood announced plans to start offering cryptocurrency trading in the European Union in the coming weeks.

Alphabet, the parent company of Google, has sold its entire stake in Robinhood Markets Inc, a popular trading app operator. Alphabet had accumulated up to 4.9 million Robinhood shares by the end of 2021, valued at approximately $419 million. However, the tech giant has been gradually pulling away from Robinhood, having previously slashed its stake in the company by almost 90%. Robinhood has been struggling to stay afloat due to various challenges, including interest rate hikes by the Federal Reserve and its association with the now-defunct cryptocurrency exchange FTX.

Alphabet, the parent company of Google (GOOG.O), has liquidated its holdings in Robinhood. Previously, Golden Finance reported that ARK Invest increased its holdings in Robinhood stock by $9.54 million on November 8.