Robinhood Markets Stock (HOOD) Marches Higher as Crypto Volatility Drives Net Deposits

Robinhood Markets (HOOD) has surged to a new all-time high just below $75 per share, and the momentum shows no signs of slowing. The rally is being fueled by explosive growth in crypto trading, accelerating international expansion, and a steady stream of innovative product launches—all against a backdrop of favorable trading conditions.

These catalysts are driving both strong financial performance and heightened investor confidence. Although the stock may appear overvalued after its recent run-up, the company’s impressive growth trajectory and clear competitive edge suggest that this momentum could be sustained. In short, Robinhood’s rally looks far from over.

Crypto Trading Boom Lights Up Revenue

Bitcoin is approaching the $110,000 mark, and Robinhood’s crypto platform is seeing a surge in activity. In Q1, the company reported a remarkable 50% year-over-year revenue increase, driven primarily by record crypto trading volumes. With Bitcoin adoption accelerating—bolstered by the rise of publicly traded treasuries and broader institutional interest—Robinhood is well-positioned to capitalize on the momentum, especially with its pending acquisition of Bitstamp, expected to close in mid-2025.

The Bitstamp deal could be transformative, giving Robinhood access to over 50 global crypto licenses and an established institutional client base. During the latest earnings call, CEO Vlad Tenev emphasized the “non-linear” revenue potential of crypto, noting that the current wave of adoption is just the beginning, as both retail and institutional investors pile in.

Robinhood is also investing in long-term user growth. Its “Crypto Learn and Earn” program continues to attract new users by educating them on digital assets and guiding them into active trading. Meanwhile, options trading is hitting new highs, surpassing the previous record set in March 2025 in April, providing another strong revenue driver. As enthusiasm around crypto builds, Robinhood is emerging as a key beneficiary, with both user engagement and financial performance on a sharp upward trajectory.

Global Expansion Opens New Doors

Robinhood’s growing dominance is no longer confined to the U.S.—the company is rapidly expanding its global footprint, and early signs suggest it could be a major driver of long-term growth. Its entry into the U.K. market is already gaining momentum, with over 150,000 international customers onboarded by Q1. Management has been clear: international markets represent a significant untapped opportunity. The launch of Robinhood Legend in the U.K., targeting 11 million active traders, is already showing early traction. Possibly the most important metric, especially among retail trading insiders — net deposits — is again marching higher.

Meanwhile, the recent announcement of the WonderFi acquisition marks a strategic entry into Canada, further strengthening Robinhood’s presence abroad. But this expansion isn’t just about adding logos in new countries—it’s about capturing a younger, tech-savvy demographic seeking low-cost, intuitive platforms. Robinhood’s mobile-first interface continues to resonate with Millennials and Gen Z investors, offering a user experience far superior to legacy brokerages.

And the strategy is already delivering results. Net deposits reached a record $18 billion for the quarter, reflecting a 37% annualized growth rate. Users aren’t just signing up—they’re actively funding their accounts. Robinhood is betting that its tech-driven, low-fee model will continue to win over global investors, and so far, the data supports that thesis.

HOOD Remains Premium Priced But Worth the Hype

Robinhood stock is not exactly a bargain at current levels. Trading at 57x this year’s expected earnings, it commands a steep premium. Some analysts, including those at Redburn Atlantic, have even issued downgrades, suggesting the stock’s rally may have outpaced its fundamentals.

However, Robinhood continues to gain market share at an impressive pace. Equity trading volumes have reached their highest level since Q1 2021, and the platform is outpacing legacy players like Schwab and Fidelity in options trading among younger investors. Moreover, Robinhood’s financial metrics are strong: a return on equity above 20% and net margins near 50% point to exceptional operational efficiency, well above many peers in the capital markets space. The broker’s outperformance against broader benchmarks is also a strong sign of sustained performance over time, including in periods of low volatility when markets are quiet and trading volumes are flat.

Given this momentum and profitability, Robinhood may well grow into its valuation over time, with further upside potential for investors who believe in its long-term growth trajectory. Importantly, with volatility catalysts such as Donald Trump and U.S.-China relations, which provide persistent reasons for investors to fret and worry, leading brokers like Robinhood are well-positioned to benefit.

Is Robinhood Markets Stock a Good Buy?

Wall Street remains cautiously optimistic about Robinhood’s outlook, even after its strong rally. The stock holds a Moderate Buy consensus rating, with 14 analysts bullish, five neutral, and only one bearish. However, the average price target of $65.11 implies an 11.3% downside over the next 12 months, indicating that, while sentiment is mainly positive, analysts believe the stock may have outpaced its near-term fundamentals.

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HOOD Rally Unlikely to Fade Amid Higher Trading Volumes

In summary, Robinhood’s stock is on a strong upward trajectory, and for good reason. With surging crypto trading, expanding international operations, and a sharp focus on younger, tech-savvy investors, the company is building a modern financial ecosystem that challenges traditional brokers.

While the valuation is undeniably rich, Robinhood’s rapid growth and disruptive strategy continue to justify investor enthusiasm. If trading volumes remain elevated and product innovation continues at its current pace, the rally may still have room to run. The upcoming earnings report at the ned of July is the next key catalyst to watch out for.