Alongside its Q1 earnings release yesterday, Robinhood Markets (NASDAQ:HOOD) introduced a round-the-clock trading service called Robinhood 24-Hour Market. The new feature will be gradually made available to all customers in June following its addition to the app next week.
The 24-Hour Market will allow customers to trade shares of 43 of the most traded ETFs and individual stocks, including Tesla (TSLA), Amazon (AMZN), and Apple (AAPL). These stocks will be available for trading from 8:00 p.m. ET on Sunday to 8:00 p.m. ET on Friday.
It is noteworthy that CEO Vlad Tenev aims to keep adding more stocks to the overnight trading list and anticipates expanding future trading options by the end of 2023.
Moreover, with this rollout, Robinhood became the first U.S. brokerage to offer overnight trading in individual stocks. Over 20 ETFs can be traded between 8:00 p.m. ET and 4:00 a.m. ET on TD Ameritrade and E*Trade, in addition to HOOD.
The new initiative is supposed to give a lift to Robinhood by assisting it with drawing in new clients. Robinhood’s performance has remained subdued ever since the pandemic boom ended, as investors avoided trading due to market uncertainty.
Yesterday, the company reported its eighth consecutive quarterly loss of $0.03 per share. Nevertheless, revenue increased by 47.5% year-over-year to $441 million. Both revenue and earnings surpassed analysts’ expectations. Meanwhile, Robinhood added 400,000 monthly active users in the quarter.
Analysts Remain Bullish
Following the earnings announcement yesterday, two analysts reiterated a Buy rating on the HOOD stock. Among these, JMP Securities analyst Devin Ryan believes that the company has the potential to benefit from improved macroeconomic scenarios and a rise in investors’ risk appetite.
Further, the analyst is optimistic about Robinhood’s revenue growth prospects based on “increasing contributions from its numerous recently launched and forthcoming product initiatives.”
Is HOOD a Good Stock to Buy?
On TipRanks, HOOD stock has a Hold consensus rating based on two Buys, two Holds, and three Sells. Also, the average price target of $12.59 implies 38.8% upside potential from current levels.
Investors looking to invest in Robinhood should consider following J.P. Morgan analyst Ken Worthington. The analyst has had a 92% success rate in his ratings on HOOD stock, with an average return of 31.72% per trade.
