Robinhood’s (HOOD) evolution from meme stock trading champion to a wealth management platform rages on.
The company said late Wednesday it will be launching futures and index options trading on its app, a move widely telegraphed for months. Both features will debut on Robinhood’s app “soon,” per Robinhood.
The company also took the wraps off of Robinhood Legend, billed as a sleeker trading platform that targets more sophisticated investors. Robinhood Legend will allow up to eight charts open in a single window, and it could elevate various technical indicators for traders such as Bollinger Bands.
“With Robinhood Legend, futures, and index options, we’re helping customers harness the full power of the markets so they can take control of their financial future,” said Robinhood co-founder and CEO Vlad Tenev.
The redesign and new product drops follow a series of debuts and pivots in recent months.
Robinhood scooped up crypto exchange Bitstamp in June and took aim at credit players American Express (AXP) and Visa (V) in March with the launch of a credit card that offers 3% cash back on purchases.
In November 2023, it finally debuted its stock trading app in the UK after it launched 24-hour trading on select stocks and ETFs earlier that year.
“We don’t want to just serve active traders. We want to grow wallet share with our customers; we want to help them build wealth,” Tenev told Yahoo Finance in a recent interview.
Investors have taken notice of Robinhood’s transformation.
Its shares are up 110% year to date as elevated interest rates have boosted lender profits and sentiments on its innovation pipeline have improved. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are up by 21% and 22%, respectively, on the year.
The company reported second quarter revenue grew 40% over last year to $682 million. Net earnings improved sharply to $0.21 a share from $0.03 a year ago.
Not everyone on the Street is sold on the company sustaining its profit momentum as rates decline.
“We continue to see opportunities across its product pipeline in derivatives, Gold, and crypto, but some of these offerings are early in development and/or adoption with their inherent earnings power unproven across rate environments,” warned JPMorgan analyst Ken Worthington in a client note.
The analyst has an Underweight rating on Robinhood, the equivalent of a Sell.
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