HOOD stock has gained momentum following a surge in user engagement and trading volume, prompting renewed interest among investors. The brokerage's recent financials and strategic shifts suggest potential upside despite ongoing challenges in profitability.
- HOOD stock rose 14% in two weeks following a 27% increase in average daily active users (13.2 million in December 2025)
- Q4 2025 commission revenue grew 35% YoY, with options trading volume up 41%
- Non-commission revenue made up 58% of total revenue in Q4, up from 46% YoY
- Net loss narrowed to $112 million in Q4 2025, a 32% improvement from the prior year
- Institutional ownership increased to 56%, and three analysts have upgraded the stock
- Market cap reached $19.3 billion, a 22% gain from 2024 low
Robinhood Markets Inc. (HOOD) has emerged as a focal point for investors seeking exposure to digital brokerage growth, with its stock showing a 14% uptick over the past two weeks. This rally follows a 27% increase in average daily active users (ADAU) during December 2025, reaching 13.2 million, according to internal metrics. The platform reported a 35% year-over-year rise in commission revenue, driven by a 41% spike in options trading volume in the final quarter of 2025. The company's pivot toward a diversified revenue model—now including interest income from cash balances and fees from its premium offerings—has helped stabilize earnings. In Q4 2025, non-commission revenue accounted for 58% of total revenue, up from 46% in the same period the prior year. Despite a net loss of $112 million, the loss narrowed by 32% compared to Q4 2024, signaling progress in cost discipline. Market sentiment has improved as HOOD’s market cap climbed to $19.3 billion, a 22% recovery from its 2024 low. Institutional ownership has increased to 56%, reflecting growing confidence. Analysts at three major firms have upgraded their stance, with one citing the potential for a 20% upside over the next 12 months if user retention and mobile engagement sustain momentum. The broader impact includes renewed interest from retail investors, many of whom view HOOD as a proxy for market volatility and youthful market participation. However, competitive pressures from platforms like Charles Schwab and Fidelity remain significant, particularly in wealth management and investing tools. Regulatory scrutiny over trading practices and data privacy also presents ongoing risks.