Investing platform Robinhood (HOOD) is working to expand globally after receiving in-principle approval from the Monetary Authority of Singapore to offer brokerage services. This approval means that the company is on track to receive a full license once certain conditions are met, as long as there are no major issues.
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According to Robinhood, Singapore is an attractive market due to its strong regulatory system, high level of digital adoption, and growing base of retail investors. As a result, this approval moves Robinhood closer to launching a full range of services in the country. These offerings are expected to include trading in securities and derivatives, as well as custody, financing, and investment fund products.
At the same time, Singapore will serve as the company’s Asia-Pacific headquarters. However, the market’s reaction to the news was not positive. Indeed, Robinhood shares are down at the time of writing as weakness spreads across brokerage, fintech, and large tech stocks. Despite the short-term pressure on the stock, the approval is a meaningful step forward for Robinhood’s expansion plans.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 14 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $106 per share implies 26.3% upside potential.
