The stock market has taken a big hit in 2022, and the Nasdaq Composite (^IXIC 2.02%) has been at the epicenter of the shift away from high-growth stocks toward more-conservative investment plays. Yet after having fallen more than 20% at its worst point of the year, the Nasdaq has rebounded sharply. As of 10:30 a.m. ET today, the Nasdaq was up nearly another 1%, clawing back to within 7.5% of where it started the year.
One stock that helped to lead the charge higher was Robinhood Markets (HOOD 4.44%), which jumped to regain some of its lost ground since its initial public offering (IPO) last year. Yet there was another Nasdaq-listed stock that did even better, following earnings results that gave shareholders newfound optimism. Let's take a closer look at both of these Nasdaq winners.
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More hours for Robinhood
Shares of Robinhood Markets were up 23% late Tuesday morning. The app-based brokerage company had seen its stock struggle since its July 2021 IPO, but shareholders are hopeful that a recent move to give customers more opportunities to make trades could help it recover.
Robinhood announced that it would make extended-hours trading available to its users for a broader set of hours than was previously available. The broker will now allow users to get buy and sell orders executed as early as 7 a.m. ET, two hours before its previous 9 a.m. ET trading start. And evening traders will be able to buy and sell as late as 8 p.m. ET, two hours later than the 6 p.m. ET deadline previously.
Moreover, Robinhood signaled that this was only the beginning of broader efforts to make its trading app more valuable. Eventually, the brokerage company wants to permit trading 24 hours a day, seven days a week, allowing the user experience for stocks to match the 24/7 availability of cryptocurrency markets.
Investors have become used to the idea of being able to conduct financial transactions whenever and wherever they want, and extending trading hours is one way the company can meet investor demand. Reduced trading volume and liquidity could well hurt those early-bird and night-owl investors' results, but for Robinhood, higher volume means more financial success in its brokerage results.
More love for Lovesac
Lovesac (LOVE -0.05%) was an even bigger winner on the Nasdaq Tuesday. The shares of the home furnishings specialist jumped more than 30% after the company released strong fourth-quarter and full-year financial results.
Lovesac's numbers showed a successful holiday quarter. Revenue was up 51% to $196 million in the fourth quarter, finishing fiscal 2022 with a 55% rise in sales. Net income also jumped by half for the quarter, producing earnings of $2.03 per share. Full-year earnings of $2.86 per share were nearly triple what Lovesac earned the previous year.
Lovesac saw strength from all of its distribution channels. Internet-based sales continued to show solid gains of 22.8% year over year for the quarter, a strong result given the extreme growth in e-commerce channel sales in the previous year's period. Meanwhile, comparable showroom sales soared 72.6% for the quarter as shoppers returned to stores in person.
Lovesac has done a great job of turning its business around, and investors are optimistic about its prospects to continue growing. The stock would still need another 50% gain to hit new highs from here, but bullish shareholders might well see that mark as a target for the stock to hit in the months and years to come.
