The stock of online brokerage Robinhood Markets (HOOD) is up 7% on July 2 and briefly broke above $100 to hit an all-time high as retail investors cheer its latest cryptocurrency offerings.
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HOOD stock traded as high as $100.88 as the rally in the company’s shares rolls on. Robinhood’s share price is now up 164% this year and trouncing the returns of most other securities. The rally has accelerated even though Robinhood was overlooked for inclusion in the benchmark S&P 500 index this spring.
HOOD stock is now up nearly 20% in the last five trading sessions after the exchange announced several new cryptocurrency offerings for its clients, most of whom are individual retail investors. The new crypto products include new tokens, Layer 2 blockchain features, and an expanded suite of crypto assets in both Europe and the U.S. that have perpetual futures and staking capabilities.
Pre-IPO Access
Robinhood also just announced that it is offering tokenized shares of popular companies that are not yet publicly traded, including artificial intelligence (AI) start-up OpenAI and Elon Musk’s SpaceX. The tokenized shares are currently available only to users in Europe, with plans to also offer them in the U.S.
News that investors can gain access to pre-IPO companies sent HOOD stock up 13% in a single trading day and sparked a feverish rally in the shares. While American clients of Robinhood cannot yet access tokenized stocks, Robinhood has reintroduced crypto staking that had been previously blocked by the U.S. Securities and Exchange Commission (SEC) for digital assets such as Ethereum (ETH).
Is HOOD Stock a Buy?
The stock of Robinhood Markets has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 14 Buy, five Hold, and one Sell recommendations issued in the last three months. The average HOOD price target of $74.16 implies 24.32% downside from current levels.
