What Happened?
Shares of financial services company Robinhood (NASDAQ:HOOD) jumped 6.7% in the afternoon session after Morgan Stanley named the stock a "Top Pick." The firm added, "We see a compelling opportunity... and move to Top Pick."
After the initial pop the shares cooled down to $48.36, up 5% from previous close.
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What The Market Is Telling Us
Robinhood’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 8.8% on the news that Bernstein analyst Gautam Chhugani named the stock a Top Idea for 2025, highlighting its strong position in the crypto space. Chhugani added, "Robinhood is our new Best Idea in our Global Digital Assets coverage. It has so far operated a constrained crypto business, but we expect this to change as the regulatory environment for crypto becomes more favorable."
Separately, market optimism in the crypto market improved after Bitcoin, the largest cryptocurrency by market cap, rebounded and surpassed $96,000 amid heightened volatility. Notably, Bitcoin edged close to $90,000 the previous day.
Robinhood is up 22.5% since the beginning of the year, and at $48.36 per share, has set a new 52-week high. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $1,387.
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