Robinhood Hits ATH: 2 Major Factors Behind the Rise

Robinhood Markets, Inc. (NASDAQ: HOOD) has emerged as one of the standout performers in the S&P 500 this year, with shares surging over 226% year-to-date as of September 29, 2025. The commission-free trading platform recently hit a new all-time high of $132.03, marking a remarkable transformation from its $23 price point in late September 2024. Trading at approximately $131.84 with an 8.26% daily gain as of 12:05 PM EDT, the stock has captured investor attention through a combination of strategic expansion and favorable market positioning.

Factor 1: Explosive Cryptocurrency Revenue Growth

Robinhood’s cryptocurrency business has become a significant revenue driver, with crypto revenues surging 98% last quarter to $160 million. This marks nearly six consecutive quarters of triple-digit growth in the crypto segment, demonstrating the platform’s ability to capitalize on the digital asset boom. The company’s strategic acquisition of global cryptocurrency exchange operator Bitstamp has further strengthened its position, providing over 50 active licenses and registrations internationally.

The crypto expansion extends beyond retail trading, with Robinhood enhancing its enterprise efforts by improving lending and staking infrastructure. The platform now offers more specialized products tailored for hedge funds, fintechs, and registered investment advisors. A friendlier regulatory climate and growing political support, including from the Trump administration, have created additional tailwinds for the company’s crypto ambitions.

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Factor 2: Expanding Customer Base and Platform Assets

Robinhood’s customer acquisition strategy has proven highly effective, with funded accounts jumping by 2.3 million last quarter to reach 26.5 million total users. Platform assets have nearly doubled year-over-year to $279 billion, creating a substantial revenue engine that enables more trading activity, higher interest income on idle cash, and greater potential for advisory fees. This growing asset base directly translates to improved financial performance through the company’s unique revenue model.

The platform’s appeal to younger demographics positions it strategically for the anticipated wealth transfer from older generations to millennials and Gen Z over the next two decades. By acquiring users early in their investment journey, Robinhood stands to benefit as their assets and investment needs grow over time. The company has begun diversifying its offerings beyond trading to include retirement accounts, high-yield cash balances, and wealth management tools to retain users as their financial sophistication increases.

Robinhood Hits ATH with Triple-Digit YTD Gains

As of 12:05 PM EDT on September 29, 2025, Robinhood Markets (HOOD) is trading at $131.84, up $10.06 or 8.26% for the day. The stock recently hit an all-time high of $132.03 and has shown remarkable momentum since breaking out from a double-bottom base in May. With a market capitalization of $116.71 billion and a 52-week range of $22.05 to $132.75, HOOD has delivered exceptional returns for investors.

The stock trades at a trailing P/E ratio of 61.82 and forward P/E of 59.17, reflecting high growth expectations. Key metrics include a profit margin of 50.13%, return on equity of 23.54%, and diluted EPS of $1.97. With total cash of $19.26 billion and revenue of $3.57 billion over the trailing twelve months, the company maintains a strong financial position. Recent analyst price targets range from $50 to $160, with an average target of $118.80.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.