Robinhood Markets (HOOD -2.38%) stock is up 500% over the 12 months ending Monday. It's no longer solely the home of the meme investor, and it offers a wide assortment of financial services for customers.
You may have missed this past year's gains, but you haven't missed out on the chance to buy Robinhood stock. Here's why.
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Offering customers more
Robinhood's core product is no-fee investing. That's how it burst onto the markets a few years ago and quickly became the go-to platform for retail investors.
Today, it has become a solid player in the financial system, building on that base layer to offer a broad range of investing tools as well as wealth management services and even a credit card. Users enjoy its easy-to-use platform that makes trading simple, and its gold members, who pay $5 monthly or $50 annually for an assortment of perks, are rapidly increasing in number.
Robinhood released its second-quarter earnings on July 30, and there were confidence-boosting results. Revenue increased 45% year over year to $989 million, and net income increased 106% to $386 million. It added 2.3 million "funded customers" over the past four quarters, or a 10% increase, to 26.5 million, and gold members increased 76% year over year to 3.5 million.
This is a story that's far from over. Not only is Robinhood gaining momentum, but it's constantly launching new products to generate interest and revenue. In fact, in the second quarter, it acquired currency exchange Bitstamp, rolled out several new features in some European markets, introduced new cryptocurrency capabilities, and announced a deal to acquire WonderFi.
Robinhood stock isn't for the risk-averse investor, but it has a long growth runway as it brings out new and innovative financial services, and it could be an exciting candidate if it fits your risk profile.
