Financial services platform Robinhood Markets (NASDAQ:HOOD) is making rapid strides in the cryptoverse following its recent acquisition of Bitstamp. The company is considering launching crypto futures in the U.S. and Europe.
HOOD’s Crypto Play
Robinhood agreed to acquire global crypto exchange Bitstamp for $200 million last month. The acquisition, estimated to close next year, is expected to boost HOOD’s global crypto business as Bitstamp holds over 50 active licenses and registrations globally.
Robinhood hopes to use Bitstamp’s licenses to offer perpetual Bitcoin (BTC-USD) and other token-based futures in Europe, according to Bloomberg. The company also plans to launch similar products in the U.S. Robinhood’s moves come in the wake of the recent approval for spot crypto ETFs in the U.S. Earlier this year, the company also snapped up a futures broker license from Marex.
Robinhood Gravitates Toward Investment Advisory
Importantly, Robinhood is eyeing expansion in the equity space as well. This week, the company acquired Pluto Capital. The latter provides AI-powered investment research services. Transitioning towards investment advisory could mean another revenue boost for HOOD.
Barclays’ Benjamin Budish, though, is not completely optimistic about HOOD’s Pluto move. The analyst has a Sell rating on HOOD alongside an $18 price target. Budish noted that the path toward complete integration of Pluto’s services into HOOD’s solutions is unclear. Additionally, Pluto’s solutions are still in the early stages and may not substantially benefit HOOD in the short term.
Is HOOD Stock a Buy, Sell, or Hold?
Overall, the Street has a Hold consensus rating on Robinhood, alongside an average HOOD price target of $22.04. This implies the stock may be hovering at fair valuation levels at present.
Read full Disclosure
