Robinhood Shares Hit All-Time High Following Bitstamp Deal Closure

Shares of Robinhood Markets, Inc. HOOD touched an all-time high of $72.72 during yesterday’s trading session after announcing the completion of the acquisition of global cryptocurrency exchange Bitstamp Ltd.Founded in 2011, Bitstamp has offices in Luxembourg, the U.K., Slovenia, Singapore and the United States. With this acquisition, Robinhood will be able to significantly enhance its crypto offerings as Bitstamp features more than 85 tradable assets.Also, the deal introduces Robinhood’s first institutional crypto business.Johann Kerbrat, the general manager of Robinhood Crypto, said, “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors.”Robinhood Shares Ride on the Recent Crypto Market RallyFor HOOD stock, the surge to a new high has come at a time when stocks and cryptos are witnessing a rebound, with Bitcoin setting fresh records. Riding on the crypto wave, in May, Robinhood agreed to acquire WonderFi, a leader in digital asset products and services in Canada. Thus, the company aims to capitalize on the rising crypto demand among Canadian investors.Further, since Donald Trump was elected President, the demand for crypto has increased as regulators have been easing norms and regulations for firms to venture into digital assets. In March 2025, Trump signed an executive order to establish a strategic crypto reserve. Thus, new investors are being attracted to cryptocurrencies to boost their returns and leverage the benefit of diversification as an asset class.In addition to this, on Feb. 13, 2025, Trump announced a plan for “reciprocal” tariffs to reduce the fiscal trade deficit. The move brought concerns regarding potential tariff wars, leading to higher market volatility. Though the situation has pacified to some extent in light of a pause on tariffs as countries negotiate, uncertainty continues to linger surrounding the impacts of tariff policies. This heightened volatility has led to increased market participation, which has been contributing to the crypto rally.For Robinhood, the heightened volatility in the crypto markets is a positive because it will likely aid its transaction-based revenues.In the first three months of 2025, HOOD’s cryptocurrency revenues were $252 million, constituting 27.2% of the total net revenues. Over five years (2019-2024), the metric witnessed a compound annual growth rate (CAGR) of 140.3%.HOOD Gets Further Impetus From Business DiversificationRobinhood became extremely popular among younger generations, riding on the meme stock wave in early 2021. However, since its IPO in July 2021, the company has taken several steps to evolve from merely being a brokerage firm to a more mature and diversified entity, striving to become a one-stop shop for building generational wealth.Last week, the company rolled out Robinhood Legend, a browser-based desktop trading platform, in the U.K. after launching the same in the United States in October 2024.In March 2025, Robinhood launched a prediction market hub. In the same month, the company launched Robinhood Strategies, Robinhood Banking and Robinhood Cortex, a suite of new features, to boost the wealth management offerings for its Robinhood Gold members. In January 2025, the company launched Futures, while in December 2024, it introduced the Tax Lots feature for investors.In February 2025, Robinhood acquired TradePMR to expand into the registered investment advisor’s custody market. In July 2024, HOOD acquired Pluto Capital Inc. With the integration of the latter’s advanced capabilities, the former is set to revolutionize the investment experience for its users.Additionally, the company launched its first-ever credit card in March 2024.Thus, rapid product innovation through vertical integration will likely expand HOOD’s client base, enabling greater operating leverage and paving the way for sustained profitability. Further, easier regulations for digital asset businesses, along with heightened volatility due to tariff policy concerns, complement HOOD’s efforts to improve its top line through product diversification.Robinhood’s Zacks Rank & Price PerformanceSo far this year, HOOD shares have soared 92.5%, significantly outperforming the industry’s 7.6% rally. Image Source: Zacks Investment Research Currently, HOOD carries a Zacks Rank #3 (Hold).Better-Ranked Finance Stocks Worth a LookA couple of better-ranked stocks from the finance space are Encore Capital Group, Inc. ECPG and SLM Corporation SLM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Estimates for ECPG’s current-year earnings have been revised 11.6% upward in the past 60 days. The company’s shares have lost 21% over the past six months.Estimates for SLM’s current-year earnings have been revised 1.6% north in the past two months. The company’s shares have gained 24.4% over the past six months.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SLM Corporation (SLM): Free Stock Analysis Report Encore Capital Group Inc (ECPG): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks