Discount online brokerage firm Robinhood Markets, Inc. (HOOD) is a California-based financial services company providing investors with services such as cryptocurrency trading, dividend reinvestment, fractional share investment, and more. The platform allows real-time trading in stocks, crypto, and options, along with a Robinhood Gold membership tier and Robinhood Cash debit card program. It earns transactional fees from routing orders to market makers when an order is executed.
Given its close ties to the cryptocurrency market, shares of Robinhood have spiked 35% since the start of the year alongside Bitcoin's (BTCUSD) breakout to record highs, easily outperforming the 9.2% return of the S&P 500 Index ($SPX). However, HOOD still trades more than 11% below its 52-week high.
