Robinhood’s shares (Hood) increased in the activity prior to the market on Thursday after the popular commercial application reported profits of the fourth quarter that beat Wall Street estimates driven by a massive jump in cryptographic income.
The company reported $ 358 million in revenue from cryptographic transactions in the quarter, said the highest contribution of digital asset trade, said Wall Street Bank JPMorgan (JPM) in a research report on Wednesday.
JPMorgan increased its objective price for shares to $ 45 from $ 39, while maintaining its neutral rating. Citi (c) increased its objective to $ 60 from $ 45 and maintained its neutral rating in the action. The Bernstein corridor duplicated by the price objective of $ 105 from $ 51 and maintained a higher performance rating than the shares.
The action increased 13% to $ 63.20 in the first operations on Thursday after the results, published after the market closed on Wednesday.
Robinhood said that the revenue of the fourth quarter increased 115% from the year prior to $ 1.01 billion, which exceeded the estimation of Wall Street analysts of $ 945.8 million, according to FACTSET data. Transaction -based profits increased 200% year after year, mainly due to a 700% increase in cryptocurrency income.
Crypto’s revenues normally contribute to 10% -20% of total income, JPMorgan said. The 46% jump in the total limit of the cryptocurrency market in the period and the increase in the notional volumes of Robinhood, which were 393% higher from quarter to quarter, fed the rate of income.
The company has great plans for its cryptographic business. “Management seeks to add more tokens, strengthen its wallet offer, add an order book with exchange routing functionality, integrate Bitstamp and explore long -term tokenization,” the report said.
Robinhood has benefited from favorable trends since the beginning of the year, with “tail photographs of the cryptographic market and retail activity remain strong,” said Citi.
If this positive backdrop is maintained, it is likely that the shares see support, but investors must expect volatility. While the bank has become more positive in the fundamental perspective of the company, he said he preferred to expect a “more reasonable entry point.”
Bernstein reiterated that Robinhood was the best idea in the global coverage of digital assets of the corridor. He said he expected a continuous impulse in the first quarter “driven by cryptility cryptility and a sustained price cycle.”
Read more: Robinhood’s gain rhythm could be a good omen for Coinbase
