Why Robinhood Stock Was Scorching Hot Last Month
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June is a sluggish month for some, but it sure was active for next-generation brokerage Robinhood (HOOD -3. The company launched a set of new features on its platform, closed an...
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July 5, 2025
02:43 PM
The Motley Fool
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June is a sluggish month for some, but it sure was active for next-generation brokerage Robinhood (HOOD -3
The company launched a set of new features on its platform, closed an acquisition, and published monthly operating metrics that pleased the market
That might be an understatement; the stock rose by over 41% in value across June
New features and a new asset Not every development was a boon for Robinhood, however
Speculation was rife that the company's stock would be added to the benchmark S&P 500 index as part of the gauge's quarterly rebalancing
Those hopes were dashed, however, when S&P Dow Jones Indices announced that it would leave the index unchanged
Investors sold out of Robinhood on the news
Image source: Getty Images
The S&P 500 disappointment came after a bright spot for the company, namely its monthly operating data release
Robinhood divulged that in May, total assets on its platform were up a beefy 89% year over year to $255 billion
Meanwhile, overall trading volumes also rose briskly, with volumes for stocks more than doubling to over $180 billion, options contracts advancing 36% to nearly the same amount, and a 65% increase in crypto activity (to just under $12 billion)
The new features announced by Robinhood in mid-June also piqued the market's attention
While most of these were fairly minor, several have the potential to make the company's trading portal stickier
One is stock "tokens," or equity derivatives that reside on a blockchain, that will allow European users to trade U
Another is its artificial intelligence (AI)-enhanced Cortex Digests analytical tool
On the subject of blockchain nology, Robinhood a big move in that space
It announced that it had closed its buyout of global cryptocurrency exchange operator Bitstamp
In the press release trumpeting this, the company said that Bitstamp has more than 50 active licenses and registrations around the world, as well as customers located in the U. , European Union, and Asia
In the press release, the company said that owning Bitstamp "significantly enhances Robinhood's Crypto duct for customers across the globe. " Busy in the best way So, June was a whirlwind, but in a good way for Robinhood
Some investors might not be too excited the company doubling down in the volatile world of crypto, but as a trading platform -- essentially an intermediary -- it shouldn't be directly affected by the asset class's famous volatility
Outside of that, those metrics sure looked good, and overall, management seems to be positioning Robinhood in front of some juicy growth opportunities
I'd be bullish on this company's future
Eric Volkman has no position in any of the stocks mentioned
The Motley Fool has no position in any of the stocks mentioned
The Motley Fool has a disclosure policy.
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