Online trading platform Robinhood (NASDAQ:HOOD) has acquired Pluto Capital, an artificial intelligence (AI)-powered investment research platform. Pluto’s AI capabilities will likely enhance the company’s product suite. Moreover, it will help HOOD bring more AI-powered tools to its customers.
The Deal Benefits
Pluto’s AI technology will improve Robinhood’s offerings with customized investment strategies based on risk tolerance and investment goals. This will allow Robinhood to offer more tailored solutions to its customers. Additionally, Pluto’s AI can quickly identify market trends and investment opportunities, enhancing Robinhood’s platform.
A key aspect of this deal is that Jacob Sansbury, Pluto’s Founder and CEO, has joined Robinhood’s team. Sansbury’s AI expertise will speed up Robinhood’s product development. It’s worth noting that Robinhood plans to integrate AI across its platform to improve the overall user experience and expand its user base.
Recent Strategic Moves by Robinhood
The acquisition of Pluto Capital is part of Robinhood’s broader strategy to expand and diversify its offerings. Earlier this year, Robinhood acquired Bitstamp, a global cryptocurrency exchange. The move will enable HOOD to expand globally and strengthen its institutional business.
Additionally, Robinhood reduced interest rates for margin investing in May. This will help HOOD offer the lowest margin rates among top brokers and attract more traders.
The company is also investing in new products and services. In March, it introduced a credit card for its Gold members. The move aims to boost Robinhood’s premium user base and expand the personal finance market.
Is Robinhood a Good Stock to Buy?
Robinhood stock has rallied and gained about 79% year-to-date. Given this significant move, Wall Street analysts are sidelined on HOOD stock.
Robinhood stock has a Hold consensus rating based on six Buys, six Holds, and three Sell recommendations. The analysts’ price target on HOOD stock is $22.04, implying 3.29% downside potential from current levels.
