Cryptocurrency and stock trading platform provider Robinhood (NASDAQ: HOOD) is planning to introduce a network with which its crypto wallet holders can undergo transactions at lightning speed. The move is expected to help clients save money and time.
Demand in the Bitcoin network will determine the amount of network fees to be charged. Also, Robinhood expects such transfers to lower the carbon footprint of every transaction, as the need for validation will not be present.
At a Bitcoin conference, Robinhood’s Chief Product Officer Aparna Chennapragada said that the company recently completed rolling out Crypto Wallets to eligible candidates on the WenWallets waitlist. The rollout had initially begun in January 2022.
Also, it informed that wallet holders can use cryptos for giving tips on social media and pay for NFTs, among others. Notably, no fees will be charged for withdrawing cryptos from the company’s platform, but they will be required to pay a transaction fee to utilize a blockchain.
Wall Street’s Take
Yesterday, Deutsche Bank analyst Brian Bedell maintained a Hold rating on Robinhood but lowered the price target to $11 from $14. The new price target implies 2.8% downside potential from current levels.
Bedell is increasingly conservative in his long-term outlook for brokers, asset managers, and exchanges heading into Q1.
Overall, the stock has a Hold consensus rating based on five Buys, four Holds, and three Sells. The average Robinhood price target of $17.36 implies 53.4% upside potential to current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into HOOD’s performance. According to the tool, in January and February, the Robinhood website recorded a 1.1% and 11.4% growth, respectively, in monthly unique global visits compared to the previous year.
Website traffic insight is an important factor in judging a company’s performance, especially whose business is online-based. Growth in unique visits in the first two months of the quarter reflects top line upside for Robinhood. Apart from this, hedge funds have increased their position in HOOD, indicating their confidence in the stock.
Further, the company’s efforts to improve financials, including the extension of trading hours and the introduction of cash cards, seem to be working in its favor as well. Thus, it would be wise to expect that the stock has upside potential in the near term.
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