Robinhood (HOOD) continues to evolve from a stock trading champion into a wealth management platform.
The company said late Wednesday that it would launch futures and index options trading on its app, a move that has been widely communicated for months. Both features will debut in the Robinhood app “soon,” according to Robinhood.
The company also unveiled Robinhood Legend, which is described as a sleeker trading platform aimed at more sophisticated investors. Robinhood Legend will allow up to eight charts to be opened in one window, and can leverage various technical indicators for traders such as Bollinger Bands.
“With Robinhood Legend, futures and index options, we help customers harness the full power of the markets so they can take control of their financial future,” said Vlad Tenev, co-founder and CEO of Robinhood.
The redesign and new product drops follow a series of pivotal debuts in recent months.
Robinhood acquired cryptocurrency exchange Bitstamp in June and targeted credit players American Express (AXP) and Visa (V) in March by launching a credit card offering 3% cash back on purchases.
In November 2023, it finally launched its stock trading app in the UK after launching 24-hour trading on selected stocks and ETFs earlier that year.
“We don't want to serve just active traders,” Tenev told Yahoo Finance in a recent interview. “We want to grow share of wallet with our clients; we want to help them build wealth.”
Investors have noticed Robinhood's transformation.
Its shares are up 110% year to date as higher interest rates boost lender profits and sentiment improves about its innovation pipeline. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are up 21% and 22%, respectively, over the year.
The company reported second-quarter revenue growth of 40% year-over-year to $682 million. Net earnings improved sharply to $0.21 per share from $0.03 a year ago.
Not everyone on the Street is sold on a company maintaining its earnings momentum as prices fall.
“We continue to see opportunities across its product portfolio in derivatives, gold and cryptocurrencies, but some of these offerings are in an early stage of development and/or adoption with their inherent earnings power unproven across price environments,” JPMorgan analyst Ken Worthington warned in a client. Note.
The analyst has an underweight rating on Robinhood, which equates to a sell.
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