Robinhood Markets (HOOD) is entering the premium credit card market with its new $695 ‘actual’ Platinum Card, aiming to challenge heavyweights like American Express (AXP) and JPMorgan Chase (JPM). Ahead of the launch, HOOD stock jumped 8% on Wednesday, fueled by anticipation of the event and a strong Bitcoin rally, and added another 3% in pre-market hours today following the official announcement.
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For context, Robinhood Markets offers commission-free trading for stocks, ETFs, options, and cryptocurrencies, along with cash management and investing tools aimed mainly at retail investors.
Robinhood Enters Premium Credit Card Market
With this launch, Robinhood has entered the competitive premium credit card market, targeting affluent consumers willing to pay high annual fees. The company’s new card builds on its Gold Card, offering customers higher credit limits and access to a variety of health, travel, and dining perks. Platinum card members also receive unlimited priority airport lounge access.
Robinhood will charge $695 per year for its Platinum Card, offering users cashback and other benefits valued at around $3,000. By comparison, American Express’ Platinum Card carries an $895 annual fee, while JPMorgan’s Chase Sapphire Reserve costs $795. Both competitor cards provide premium perks valued at approximately $3,500 and $2,700, respectively, according to their websites.
Deepak Rao, vice president and general manager of Robinhood Money, said, “We want to go after the legacy players’ customers,” noting that American Express is “obviously the benchmark.” He added that the card could also serve as a channel to attract wealthy customers, who may then use Robinhood’s other financial services.
Robinhood Expands Financial Services
Robinhood’s new Platinum Card is part of a broader push to move beyond its image as a platform for speculative trading. As its customer base matures, the company aims to reposition itself as a comprehensive financial platform offering a wider range of services.
In addition, Robinhood introduced a new family investing experience, enabling clients to view their overall finances, establish custodial accounts for minors, and create trust accounts.
Investors are optimistic amid Robinhood’s new product launches, as the brokerage takes steps toward its goal of becoming “a financial super app.” HOOD stock has faced pressure this year due to falling cryptocurrency prices, which contributed significantly to the company’s disappointing earnings report last month.
What Is Robinhood’s Target Price?
According to TipRanks’ consensus, HOOD stock has a Strong Buy rating, based on 14 Buys and two Holds assigned in the last three months. The Robinhood Markets share price target of $125.92 implies an upside of more than 50% over current trading levels.
