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Robinhood (HOOD) stock is in focus after the US Securities and Exchange Commission (SEC) closed its investigation into the company's crypto business. The news comes just after the SEC dropped its case against Coinbase (COIN), a positive signal for the crypto industry under President Trump's second term.
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This post was written by Naomi Buchanan.
All right, let's take a look at Robin Hood, another stock that's actually done very, very well here over most recent weeks, but the SEC is dropping its investigation into the company's crypto business and has no intention of moving forward with an enforcement action. This comes days after Coinbase announced that the SEC did agree to end its enforcement case against them. Shares pop just about 1 and a half percent. This is a stock that has done tremendously well since Trump was elected here as president. Take a look at some of those gains. The stock up just about 160%. Yes, it is coming off its worst week that we've seen since December of 2021, but putting it into more broader context of the gains that we've seen since the November 5th election, we are still looking at a jump of just about 160%. This, of course, the news out that we're getting this morning, removing another potential overhang here on the stock moving forward. And I think it's fair to say overall, the street very optimistic maybe about some of the developments that we could see come from Washington, come from the White House, the new administration here in regards to crypto and what that looks like, a more favorable administration.
Yeah, just think back to how they talked about this on the earnings call as well here saying that in January of this year, net deposits were their second highest month ever. Equities, options, crypto trading volumes were all up double to triple digit growth rates from a year ago. In fact, they went on to say January option volumes all-time highs there. And so, all these things considered, you think back to the margin balances as well here in the in the balances for customers who are using the platform continuing to put even more into those accounts, funding their accounts, and then even for what it means for Robin Hood, how many of them are opting into that golden premium tier as well. I think it was somewhere around 2.6, 2.7 million gold paying subscribers here. I'm going back to my notes here from a couple weeks back. But all those things considered for Robin Hood in their growth trajectory trying to extract even more of the average revenue per user because of that gold. And then additionally, looking across some of where they're looking at the tokenization of private assets as well. That's a major boon to the business in the future that they're thinking through as well at this juncture. Uh, we're seeing shares higher pre-market 1.6%.
