Brokerage giant Robinhood announced new extended trading hours yesterday, sending the company’s stock +20%. $HOOD also trended on Stocktwits.
The company’s new trading hours will be from 7:00 AM to 8:00 PM ET, expanding the existing pre-market and post-market trading hours which were previously offered from 9:00 AM to 6:00 PM. Robinhood indicated that this change in hours is an “important step towards 24/7 equities investing.”
The controversial broker, now more than a year out from the GameStop/AMC short squeeze, is looking forward to lackluster YoY comps for the coming reporting quarter. 👎 It will be hard to mimic the success of Robinhood’s pandemic-era explosion in popularity, but the company is now faced with the threat of losing active and engaged users. Naturally, this loss would degrade its stock even further, turning Robinhood into a potential acquisition target.
This decline might explain why the company is pulling out stops to excite investors and build its product. In recent weeks, Robinhood launched a new Cash Card in an effort to offer users a Stash-like “roundup” alongside rewards and bonuses. 🎁 However, the $12 billion company has lagged on some of its more anticipated features, like a long-awaited crypto wallet, the addition of more crypto assets, and others.
We’ll be covering developments with Robinhood (and other fintech companies, which are expected to take similar YoY comp hits) in the coming weeks. ⏳