The stock of Robinhood Markets (HOOD) is up on media reports that the online brokerage is creating an app to help people manage their Trump accounts.
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The U.S. Department of the Treasury said that Robinhood is collaborating with Bank of New York Mellon (BK) to be the designated financial agents for Trump accounts, which are the investment accounts established by U.S. President Donald Trump to provide children born between 2025 and 2028 with a one-time $1,000 government contribution.
BNY Mellon will officially manage the initial accounts and has partnered with Robinhood Markets to develop a new app for Trump accounts. The Trump accounts officially launch on July 4 of this year and will serve as tax-deferred investing accounts for new born children. Several employers in the U.S., including BNY Mellon, have promised to match the $1,000 donation from the U.S. government.
A Boost for Robinhood Markets
In a statement, BNY Mellon wrote, “In collaboration with Robinhood, a leading financial technology platform committed to democratizing the markets for investors, we are helping to expand access to financial opportunity for all Americans.”
As of the end of March this year, more than four million Trump accounts had been signed up for by American taxpayers, and more than one million were eligible for the government’s $1,000 contribution, according to the Internal Revenue Service (IRS).
Is HOOD Stock a Buy?
Robinhood stock has a consensus Strong Buy rating among 17 Wall Street analysts. That rating is based on 15 Buy and two Hold recommendations issued in the last three months. The average HOOD price target of $117.07 implies 67% upside from current levels.
