Robinhood Markets (HOOD 3.25%) posted another quarter of year-over-year growth in all its key operating metrics, including net deposits, Gold subscriptions, and total platform assets. However, the stock fell sharply as revenue came in below analysts' forecasts. The stock is now trading 53% below its 52-week high at the time of writing.
For investors, all that matters is that Robinhood continues to broaden its offering with more features and services. This is how management is transforming Robinhood from a simple trading app to a long-term growth machine.
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Robinhood has 11 products generating over $100 million in annualized revenue, with its credit card on track to make it 12 this year. For the long term, this provides the company with multiple ways to monetize customer assets across trading, subscriptions, and fee-based offerings, such as its asset management product, Robinhood Strategies.
While revenue from trading, especially in cryptocurrencies, can fluctuate with market volatility, Robinhood is still rolling out new products to broaden its long-term revenue potential. Robinhood Banking just started rolling out to Gold members, with 25,000 customers already depositing $400 million. A banking service offers interest and fee-related revenue potential that can help smooth out trading volatility.
Robinhood's total platform assets increased 68% year over year to $324 billion. Over time, more products can attract more assets and increase customer retention. And Robinhood still has more coming. It hasn't even begun to tap the potential of its artificial intelligence (AI) capabilities. This company is steadily growing in value, making it a stock worth holding and buying on dips.
