Even after an explosive rally to $78.35, Robinhood (HOOD) could see more upside.

For one, earnings have been strong. 

Its first-quarter EPS of 37 cents beat estimates by four cents. Revenue of $927 million, up 50% year over year, beat estimates by $9.84 million. Transaction-based revenues increased 77% year over year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.

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“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” added Vlad Tenev, Chair and CEO of Robinhood. “Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”

Two, the company just increased its share buyback program to $1.5 billion.

Three, director Christopher Payne just paid $2 million for 26,500 HOOD shares. He paid an average price of $74.19 each. And four, with Bitcoin expected to increase in value, HOOD should remain a strong beneficiary.

Sincerely,

Ian Cooper