Robinhood Markets Stock (NASDAQ:HOOD), Trade Ideas

Robinhood Markets

Robinhood Markets Inc is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fractional shares, recurring investments, and IPO Access. It earns transaction-based revenues from routing user orders for options, equities, and cryptocurrencies to market makers when a routed order is executed.

Photo courtesy of Ark Invest.

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<p>Citigroup  analyst Atif Malik   maintains Silicon Laboratories (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLAB#NASDAQ">SLAB</a>) with a Neutral and lowers the price target from $137 to $120.</p>


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SLAB

Citigroup Maintains Neutral on Silicon Laboratories, Lowers Price Target to $120

<p>In a compelling showcase of how sports figures leverage their platforms beyond the field, former NFL athletes <strong><a href="https://www.benzinga.com/general/sports/24/04/38358885/joique-bell-to-discuss-journey-from-rookie-to-prominent-nfl-running-back-at-benzinga-draft-event">Joique Bell</a></strong> and<a href="https://www.benzinga.com/markets/cannabis/24/03/37797148/former-nfl-legends-bring-top-cannabis-strains-to-boston-with-launch-of-primitiv"> <strong>Rob Sims</strong></a> shared their philanthropic journeys today (April 25) during the <strong><a href="https://www.youtube.com/watch?v=93htkUYdGNc">Benzinga Sports Business Titans Draft</a></strong> event in Detroit. </p>
<p>The panel, adjacent to the NFL Draft at Campus Martius, highlighted the transformative impact athletes can have in their communities post-retirement.</p>
<h1 class="wp-block-heading"><strong>Athletes Turned Philanthropists</strong></h1>
<p>Moderated by <strong>Rachel Decker,</strong> president of <strong>Detroit Philanthropy</strong>, the conversation delved into the personal motivations behind the athletes&#8217; commitments to giving back. </p>
<p>Bell, a Michigan native and former Detroit Lion, emphasized the influence of his upbringing on his charitable efforts. </p>
<p>&#8220;Growing up, being involved in community service was ingrained in me by my parents,&#8221; Bell said. He discussed his focus on literacy and education through his foundation, which aims to improve reading levels among students within a short period significantly.</p>
<p>Sims, who transitioned from the gridiron to various business and charitable endeavors, highlighted his strategic approach to philanthropy. </p>
<p>&#8220;It&#8217;s about making an impact with the resources we have, ensuring our efforts genuinely help those in need,&#8221; Sims stated. His involvement with local organizations such as Detroit PAL and the Children&#8217;s Center demonstrates his commitment to youth and community health.</p>
<h1 class="wp-block-heading"><strong>Impact And Influence&nbsp;</strong></h1>
<p>The discussion also covered the athletes&#8217; strategies for selecting and managing philanthropic engagements. </p>
<p>Both Bell and Sims stressed the importance of aligning with causes that reflect their values and where they can make a meaningful difference. Bell shared his rigorous approach to vetting organizations before partnering with them, ensuring alignment with his goals to support community development.</p>
<h1 class="wp-block-heading"><strong>Advice For The Next Generation&nbsp;</strong></h1>
<p>As the event drew the attention of young athletes and aspiring philanthropists, Bell and Sims offered advice on starting and running charitable foundations. </p>
<p>&#8220;Understand the work that goes into managing a foundation; it&#8217;s akin to running a business,&#8221; Sims advised. Bell echoed this sentiment, emphasizing the importance of commitment and genuine passion for the cause.</p>
<h1 class="wp-block-heading"><strong>Legacy Beyond The Field&nbsp;</strong></h1>
<p>Reflecting on their legacies, both athletes expressed a desire to be remembered for their contributions off the field as much as their achievements on it. </p>
<p>&#8220;It&#8217;s not just about the sports; it&#8217;s about using our platform to make a lasting impact,&#8221; said Bell.</p>
<p><em>Photo by Dustin Blitchok.</em></p>


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Game Changers: Ex-NFL Players Talk Philanthropy For Today And Next-Gen At Benzinga Titans Draft Event

<p>Citigroup  analyst Ronald Josey   maintains Lithia Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LAD#NYSE">LAD</a>) with a Neutral and lowers the price target from $320 to $280.</p>


Citigroup Maintains Neutral on Lithia Motors, Lowers Price Target to $280

<p>Citigroup  analyst David Lebovitz   maintains Biomarin Pharmaceutical (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMRN#NASDAQ">BMRN</a>) with a Neutral and lowers the price target from $94 to $91.</p>


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Citigroup Maintains Neutral on Biomarin Pharmaceutical, Lowers Price Target to $91

<p>Citigroup  analyst Michelle Fang   maintains New Oriental Education (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EDU#NYSE">EDU</a>) with a Buy and raises the price target from $66 to $127.</p>


New Oriental Education & Technology Group

Citigroup Maintains Buy on New Oriental Education, Raises Price Target to $127

<p>Citigroup  analyst Andrew Kaplowitz   maintains Fortive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTV#NYSE">FTV</a>) with a Buy and lowers the price target from $101 to $98.</p>


Citigroup Maintains Buy on Fortive, Lowers Price Target to $98

<p>Microsoft Sees FY24 Productivity And Business Processes Revenue $19.9B-$20.2B; Intelligent Cloud Revenue $28.4B-$28.7B; More Personal Computing Revenue $15.2B-$15.6B; Cost Of Revenue COGS Of $19.6B-$19.8B; Operating Expenses Of $17.15B-$17.25B; Effective Tax Rate ~18%</p>


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MSFT

Microsoft Sees FY24 Productivity And Business Processes Revenue $19.9B-$20.2B; Intelligent Cloud Revenue $28.4B-$28.7B; More Personal Computing Revenue $15.2B-$15.6B; Cost Of Revenue COGS Of $19.6B-$19.8B; Operating Expenses Of $17.15B-$17.25B; Effective Tax Rate ~18%

<p>Citigroup  analyst Anthony Pettinari   maintains Packaging Corp of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>) with a Neutral and lowers the price target from $183 to $181.</p>


Citigroup Maintains Neutral on Packaging Corp of America, Lowers Price Target to $181

<p>Citigroup  analyst Christopher Allen   maintains Virtu Finl (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIRT#NASDAQ">VIRT</a>) with a Buy and raises the price target from $22.5 to $24.5.</p>


VIRT

Citigroup Maintains Buy on Virtu Finl, Raises Price Target to $24.5

<p>Citigroup  analyst Thomas Palmer   maintains Bunge Global (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BG#NYSE">BG</a>) with a Buy and raises the price target from $117 to $122.</p>


Citigroup Maintains Buy on Bunge Global, Raises Price Target to $122

<p>Citigroup  analyst Fatima Boolani   maintains Fastly (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSLY#NYSE">FSLY</a>) with a Neutral and lowers the price target from $20 to $15.</p>


FSLY

Citigroup Maintains Neutral on Fastly, Lowers Price Target to $15

<p>Citigroup  analyst Fatima Boolani   maintains Akamai Techs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AKAM#NASDAQ">AKAM</a>) with a Neutral and lowers the price target from $140 to $117.</p>


AKAM

Citigroup Maintains Neutral on Akamai Techs, Lowers Price Target to $117

<p>Citigroup  analyst Joanne Wuensch   maintains Boston Scientific (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>) with a Buy and raises the price target from $79 to $85.</p>


Citigroup Maintains Buy on Boston Scientific, Raises Price Target to $85

<p>Citigroup  analyst Patrick Cunningham   maintains Sherwin-Williams (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHW#NYSE">SHW</a>) with a Buy and lowers the price target from $390 to $370.</p>


Citigroup Maintains Buy on Sherwin-Williams, Lowers Price Target to $370

<p>Citigroup  analyst Jon Tower   maintains Chipotle Mexican Grill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) with a Buy and raises the price target from $3358 to $3369.</p>


Citigroup Maintains Buy on Chipotle Mexican Grill, Raises Price Target to $3369

<p>Citigroup  analyst Jason Gursky   maintains Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) with a Buy and lowers the price target from $252 to $224.</p>


Citigroup Maintains Buy on Boeing, Lowers Price Target to $224

<p>Citigroup  analyst Andrew Kaplowitz   maintains GE Aero (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) with a Buy and raises the price target from $120.43 to $186.</p>


Citigroup Maintains Buy on GE Aero, Raises Price Target to $186

<p>Citigroup  analyst Jason Gursky   maintains General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) with a Buy and raises the price target from $300 to $320.</p>


Citigroup Maintains Buy on General Dynamics, Raises Price Target to $320

<p>Citigroup  analyst Andrew Kaplowitz   maintains Vertiv Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>) with a Buy and raises the price target from $102 to $110.</p>


Citigroup Maintains Buy on Vertiv Hldgs, Raises Price Target to $110

<p>Citigroup  analyst Atif Malik   maintains Lam Research (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) with a Buy and raises the price target from $975 to $1025.</p>


LRCX

Citigroup Maintains Buy on Lam Research, Raises Price Target to $1025

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/industries/technology/">Technology stocks</a> have outperformed other sectors since the turn of the year, collectively outpacing their nearest counterpart (financial services) <a href="https://finance.yahoo.com/sectors/">by more than 2x</a>. Although technology stocks can be cyclical, many are secular, meaning they possess the means to deliver returns throughout the economic cycle. As such, adding high-quality technology stocks to your portfolio is always a good idea.</p>



<p>Investing in technology ETFs is an option if you&rsquo;re looking for low-risk exposure. However, cherry-picking is needed if you&rsquo;re in search of alpha returns. Yet, selecting technology stocks is tricky because many are often priced in. This prompted me to embark on a journey to find underpriced technology stocks for my readers.</p>



<p>Here are three technology stocks to put $500 into by the end of the month.</p>



<h2>Uber Technologies (UBER)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/uber1600-300x169.png" alt="Uber sign on its headquarters building in San Francisco, California, USA - June 6, 2023. Uber Technologies is a transportation conglomerate."><div>Source: JHVEPhoto / Shutterstock.com</div></div><p><strong>Uber Technologies</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/uber-stock-quote/"><strong>UBER</strong></a></span>) currently trades at around $75 per share, making it an affordable stock to most investors. However, affordability isn&rsquo;t the only reason I added UBER stock to the list; here&rsquo;s why I&rsquo;m bullish.</p>



<p>If you&rsquo;re looking for secular growth, you&rsquo;ve got it right here. Recent data shows that Uber&rsquo;s mobility segment achieved $19.285 billion in fourth-quarter gross bookings, up by <a href="https://seekingalpha.com/news/4063712-uber-in-charts">29.5% year-over-year</a>. Moreover, the company&rsquo;s delivery segment reached around $17 billion in gross bookings during the quarter, 18.8% higher than a year before.</p>



<p>What do the aforementioned numbers tell us? It tells us that convenience is here to stay. In fact, Uber&rsquo;s bookings surged in 2023 despite facing a topsy-turvy economy. I don&rsquo;t see any reason why this trend would change. I mean, Uber has arguably corned the mobility and delivery markets, which are both in hypergrowth mode. </p>



<p>Lastly, key metrics suggest UBER stock is a growth-at-a-reasonable-price (GARP) opportunity. For example, UBER&rsquo;s forward <a href="https://seekingalpha.com/symbol/UBER/valuation/metrics">price-to-earnings-growth ratio of 0.8x</a> implies that market participants underestimate its earnings-per-share growth rate.</p>



<p>You&rsquo;re looking at a solid opportunity here!</p>



<h2>Robinhood Markets (HOOD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/robinhood-wallet-fintech-300x169.png" alt="hood stock: An image of a wallet with a coin in it, a cellphone on top depicting Robinhood logo. Robinhood crypto"><div>Source: salarko/Shutterstock</div></div><p><strong>Robinhood</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/hood-stock-quote/"><strong>HOOD</strong></a></span>) stock, which trades at around $17 per share, recently received a boost as <strong>Cabot Wealth</strong> included HOOD in its <a href="https://seekingalpha.com/news/4088334-cabots-top-ten-list-of-stocks">top ten list of stocks</a>. Some might have reservations about HOOD stock as it is an asset with an elevated <a href="https://seekingalpha.com/symbol/HOOD/valuation/metrics">price-to-sales ratio of 8.27x</a>. However, rest assured that HOOD stock&rsquo;s fundamental prospects are improving.</p>



<p>A salient feature behind Robinhood&rsquo;s success is retail investor participation. Fortunately, retail investor participation is recovering after being bruised by a bear market in 2022 and early 2023. According to the investor movement index, retail investor participation increased by<a href="https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index">&nbsp;8.39%&nbsp;in March</a>, reaching a notable level of 51.65. Moreover,&nbsp;<a href="https://www.advisorperspectives.com/dshort/updates/2024/03/22/margin-debt-up-5-8-in-february" target="_blank">VettaFi</a>&nbsp;collated U.S. margin debt levels in February, stating that margin debt levels surged by 19% year-over-year but remained below a trend-line moving average.</p>



<p>The metrics mentioned above suggest that retail participation is increasing, but the question becomes: Is Robinhood benefiting from the increased participation? Well, Robinhood&rsquo;s fourth-quarter earnings surprised as the company surpassed its revenue target by <a href="https://seekingalpha.com/news/4066348-robinhood-markets-gaap-eps-of-0_03-beats-0_04-revenue-of-471m-beats-18_22m">$18.22 million</a> and its earnings-per-share target by four cents. This shows that Robinhood has benefitted from increased retail investor participation, which will likely continue, especially considering Robinhood&rsquo;s recent <a href="https://www.reuters.com/business/finance/robinhood-opens-britain-with-low-cost-us-trading-woo-clients-2023-11-30/">expansion into the UK</a>.</p>



<p>As mentioned before, HOOD stock faces value concerns. However, I&rsquo;m willing to bet on systematic tailwinds!</p>



<h2>Deliveroo (DROOF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/04/rsz_fooddelivery1600-300x169.jpg" alt="a delivery man in a red shirt dropping off a bag of groceries to represent food and beverage stocks"><div>Source: Shutterstock.com</div></div><p>I&rsquo;ll openly admit that <strong>Deliveroo</strong> (OTCMKTS:<span><a href="https://investorplace.com/stock-quotes/droof-stock-quote/"><strong>DROOF</strong></a></span>) is an anecdotal pick. Sure, DROOF stock possesses solid metrics. However, I picked this stock mainly due to my experience with the company&rsquo;s services. More specifically, Deliveroo&rsquo;s breadth of options, quality of vendors, and timely deliveries amazed me.</p>



<p>Deliveroo&rsquo;s business model is highly scalable, as its freelancers often use affordable bicycles or light motorcycles. This allows broader coverage and high contractor uptake. Moreover, Deliveroo&rsquo;s vendor selection focuses on quality rather than volume, adding to customer retention dynamics.</p>



<p>The UK-based Deliveroo released its full-year results in March, revealing top-line revenue of <a href="https://www.reuters.com/business/retail-consumer/deliveroo-beats-earnings-guidance-sees-positive-cash-flow-2024-2024-03-14/">&pound;85 million</a> (approximately $109 million). Although its deliveries fell by 3% during the year, enhanced systemic features will likely see that figure improve in 2024.</p>



<p>The numbers speak for themselves, indicating that Deliveroo is in its early stages of growth. While it may not reach mammoth delivery volumes, Deliveroo has a strong case for secular profits. This bullish sentiment is not just mine, but also shared by <strong>HSBC </strong>(NYSE:<a href="https://investorplace.com/stock-quotes/hsbc-stock-quote/" target="_blank"><strong>HSBC</strong></a>), who&nbsp;<a href="https://seekingalpha.com/news/4080355-deliveroo-attracts-bull-rating-from-hsbc" target="_blank">recently upgraded</a>&nbsp;Deliveroo&rsquo;s stock to a Buy rating, citing an enhanced profitability outlook.</p>



<p>Lastly, Deliveroo looks good from a market-based vantage point. For example, Deliveroo&rsquo;s <a href="https://seekingalpha.com/symbol/DROOF/valuation/metrics">forward price-to-sales ratio of&nbsp;0.92x</a>&nbsp;suggests the stock possesses absolute value. Moreover, Deliveroo recently ticked up above its 10-, 100-, and 200-day moving averages, indicating a trendline has formed.</p>



<p><em>On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a></em>.</p>
<div><p>Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for institutional equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary &ndash; University of London. Furthermore, Steve has passed all CFA Levels and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve&rsquo;s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/put-500-in-these-3-tech-stocks-before-may/">Put $500 in These 3 Tech Stocks Before May</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Put $500 in These 3 Tech Stocks Before May

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>If you just started following <strong>Robinhood</strong> stock (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/hood-stock-quote/"><strong>HOOD</strong></a></span>) stock in 2023, you&rsquo;d probably think you were watching one of America&rsquo;s great companies, given its stock is up 77% over the past year and 41% in the first four months of 2024.&nbsp;</p>



<p>Unfortunately, that&rsquo;s not the whole picture. HOOD stock has traded below $20 since December 2021, more than 28 months ago.&nbsp;</p>



<p>Its latest resurgence is due to a record-setting <strong>S&amp;P 500 </strong>combined with the rebirth of cryptocurrencies. The combination has put a fire under the digital trading platform&rsquo;s revenues.&nbsp;</p>



<p>As a result, <em>InvestorPlace </em>contributor Alex Sirois recently called it a must-buy Nasdaq stock under $20. My colleague pointed out that the launch of a credit card is one example of Robinhood management&rsquo;s desire to diversify its revenue streams. That&rsquo;s a fair point.&nbsp;</p>



<p>However, if diversification is the desired outcome, investors might be better off looking at <strong>SoFi Technologies </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/sofi-stock-quote/"><strong>SOFI</strong></a></span>).&nbsp;</p>



<p>Here&rsquo;s why.&nbsp;</p>



<h2>Robinhood&rsquo;s Revenue Streams?</h2>



<p>Page 16 of Robin Hood&rsquo;s 2023 10K indicates that it has <a href="https://s28.q4cdn.com/948876185/files/doc_financials/2023/q4/78bc4a0f-d3b2-452e-8ac1-27f366e46bd4.pdf">five types of assets</a> under custody (AUC): Equities, Cryptocurrencies, Options, Cash Held by Customers, and Receivables from Customers. As of Dec. 31, 2023, AUC totaled $102.6 billion, up from 62.2 billion in 2022. Of the gains, $17.1 billion was from net deposits, while $23.3 billion was from net market gains.&nbsp;</p>



<p>So, it grew new assets by 27% in 2023, with an average revenue per user (ARPU) of $80, up $20 from 2022 but down $23 from 2021 during the meme-stock craze.&nbsp;</p>



<p>Its revenues are broken down into three silos: Transaction-based (42% of $1.87 billion in 2023 revenue), net interest (50%), and other (8%). A real positive is that it had almost the same revenue in 2021, but its operating expenses were 44% higher.&nbsp;</p>



<p>The company has carried out <a href="https://www.coindesk.com/business/2023/06/27/robinhood-sheds-jobs-for-third-time-since-april-2022-wsj/">three tranches</a> of layoffs over the last couple of years, which explains the lower expenses in 2023 and the $536 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2023, well ahead of the $94 million loss in 2022.</p>



<p>In the end, Robinhood generates half its revenue from interest on its corporate cash, margin loans to users, Cash Sweep, and interest from its securities lending for short sellers.&nbsp;</p>



<h2>SoFi&rsquo;s Revenue Streams</h2>



<p>In 2023, SoFi&rsquo;s adjusted net revenue was <a href="https://s27.q4cdn.com/749715820/files/doc_financials/2023/q4/Q4-23-Investor-Presentation-2.pdf">$2.07 billion</a>, $200 million higher than Robinhood. Robinhood&rsquo;s revenue growth was 37%, 200 basis points higher than SoFi&rsquo;s. That&rsquo;s remarkably similar.&nbsp;</p>



<p>Its revenues are also broken into three silos: Lending (63% of 2023 revenue), tech platform (17%), and financial services (20%). While it leans on lending for more revenue generation today, tomorrow will look different.&nbsp;</p>



<p>SoFi&rsquo;s annual adjusted net revenue has increased yearly from $451 million in 2019 to $2.07 billion in 2023, a compound annual growth rate of 46.4%. Robinhood&rsquo;s 2019 net revenue was <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001783879/5da70128-0b89-456d-802a-047969b23ad9.pdf">$277.5 million</a>, for a four-year CAGR of 61.1%, considerably higher than SoFi.</p>



<p>However, the two-year CAGR looks much better for SoFi at 43.2% compared to 1.5% for Robinhood.</p>



<p>This explains, more than anything, why it sought revenue diversification with its July 2023 acquisition of X1 for $104 million. The no-fee credit card with rewards was an inexpensive way to enter the credit arena quickly. It was a smart move.&nbsp;</p>



<p>Much is made of SoFi&rsquo;s <a href="https://investorplace.com/2023/11/caution-dont-count-on-student-loans-to-make-sofi-stock-a-success/">student loan portfolio</a>. However, as I said last November, it&rsquo;s not nearly as important to the company&rsquo;s interest income as its personal loans, which have much higher interest rates.&nbsp;&nbsp;</p>



<p>As of Dec. 31, 2023, SoFi had a personal loans portfolio of $14.50 billion, more than double its student loans portfolio of $6.45 billion. The number of personal loans outstanding in 2023 rose 33% to 1.11 million, again double that of student loans outstanding.</p>



<p>More importantly, the weighted average coupon rate for personal loans at the end of December was 13.8%, 2.5x the student loan weighted average coupon rate of 5.6%.&nbsp;</p>



<h2>The Bottom Line</h2>



<p>The two companies&rsquo; income statements are similar regarding top-line revenue and bottom-line non-GAAP EBITDA profitability.&nbsp;</p>



<p>However, I don&rsquo;t think you should consider that validation of Robinhood&rsquo;s business model. Its revenue generation is far less consistent than SoFi&rsquo;s. A credit card isn&rsquo;t going to change that. It needs more financial products than its customers need and want beyond trading stocks, options, and crypto.</p>



<p>If you&rsquo;re looking for a business with legs, SoFi is the better option, despite the excellent work it has done trimming its overhead.&nbsp;</p>



<p>I wouldn&rsquo;t buy Robinhood, but that doesn&rsquo;t mean you shouldn&rsquo;t.&nbsp;<br></p>



<p><em>On the date of publication, Will Ashworth </em><em>did not have (either directly or indirectly) any positions in the securities mentioned in this article. </em><em>The opinions expressed in this article are those of the writer, subject to the </em>InvestorPlace.com<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> </em>Publishing Guidelines</a><em>.</em></p>
<div><p>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</p></div><h3>More From InvestorPlace</h3>
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	<p>The post <a href="https://investorplace.com/2024/04/robinhood-vs-sofi-which-stock-will-win-the-fintech-race/">Robinhood vs. SoFi: Which Stock Will Win the Fintech Race?</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Robinhood vs. SoFi: Which Stock Will Win the Fintech Race?

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<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>It used to be you had to have money to make money on Wall Street. And few people actually owned stocks. According to the Federal Reserve&rsquo;s <em>Survey of Financial Characteristics of Consumers</em>, <a href="https://www.federalreserve.gov/econres/files/6263_bull0364.pdf">fewer than two families in 10</a> owned stocks as recently as 1962. However, 60 years later the same survey found as many as <a href="https://www.federalreserve.gov/publications/files/scf23.pdf">58% of all families</a> owned stocks.</p>



<p>There has been a great democratization of investing over those six decades. From the advent of the first discount broker <strong>Charles Schwab</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/schw-stock-quote/"><strong>SCHW</strong></a></span>) to deep discount traders like E-Trade and TD Ameritrade, the cost of making an investment has been going down. And <strong>Robinhood</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/hood-stock-quote/"><strong>HOOD</strong></a></span>) forced the industry to virtually give up transaction fees. Now you can buy and sell stocks at no cost!</p>



<p>Essentially all the barriers previously erected to keep investing as the playground of the rich have been torn down. That means you can find stocks to buy with $100 and begin your journey to creating a comfortable retirement today.</p>



<p>So if you only have a C-note to your name, and you don&rsquo;t need that money to pay bills or for an emergency, then the following three stocks should be no-brainer stocks to buy this month.</p>



<h2>Broadcom (AVGO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/AVGO1600-300x169.jpg" alt="broadcom (AVGO) logo outside office building"><div>Source: Sasima / Shutterstock.com</div></div><p>At first glance, semiconductor stock <strong>Broadcom</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/avgo-stock-quote/"><strong>AVGO</strong></a></span>) won&rsquo;t intuitively seem a dead simple stock you should be buying with your $100. After all, shares trade for over $1,338 each. Even if you purchased fractional shares of AVGO stock, which is just a sliver of a whole share (it is totally possible and definitely worth doing), you&rsquo;re not getting much for your money, right?</p>



<p><em>Wrong! </em>You have to look at the quality of the company and not the price of a share. That&rsquo;s why <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a> are such a terrible idea. These are usually awful companies with little prospects for growth. But their cheap price makes them seem like such a deal. Unfortunately, you&rsquo;re more likely to lose whatever money you put into them rather than make a killing. That is exactly why Broadcom is an excellent choice.</p>



<p>The chip stock for mobile communication companies has seen its fortunes grow with the proliferation of smartphones. <strong>Apple</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/aapl-stock-quote/"><strong>AAPL</strong></a></span>) is a <a href="https://investorplace.com/2024/04/nose-bleed-section-3-stocks-priced-above-1000-and-worth-it/">major source of revenue</a>, accounting for 20% of the total. But the mobile market has a boom-bust cyclicality to it and Broadcom wants to smooth out those peaks and valleys. It has more recently steered its efforts towards software, and following the acquisition of VMWare last November, the chipmaker expects half of its revenue to come from this segment.</p>



<p>Broadcom stock also pays a dividend that has increased for 14 consecutive years. It has grown the payout at a 36% compounded annual growth rate (<span>CAGR</span>) over the last 10 years. Because you will enjoy capital appreciation buying this stock as well as get paid for owning it, Broadcom is the first no-brainer stock to buy.</p>



<h2>Starbucks (SBUX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/sbux1600b-300x169.jpg" alt="Learnin' From Luckin, Starbucks Stock Heats Up a Strategy"><div>Source: monticello / Shutterstock.com</div></div><p>Coffee slinger <strong>Starbucks</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/sbux-stock-quote/"><strong>SBUX</strong></a></span>) is the next stock you should be buying with your $100. At $86 a share it is trading close to its 52-week low of $84 a stub. It&rsquo;s a great price for this excellent company.</p>



<p>Starbucks stock is down in the dumps because of pressures on its international business. China is the company&rsquo;s second-largest market with over 6,800 locations and the country&rsquo;s slowing economy has weighed on performance. Similarly, its presence in the Middle East, though dramatically smaller in scope, is bearing the brunt of protests over the war between Israel and Palestinians. It also sees tougher competition here at home from Dunkin, <strong>Dutch Bros</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/bros-stock-quote/"><strong>BROS</strong></a></span>) and <strong>McDonald&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/mcd-stock-quote/"><strong>MCD</strong></a></span>).</p>



<p>Still, Starbucks enjoys <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/829224/000082922424000011/sbux-20240130.htm">growing sales and profits</a>. In its fiscal first quarter, revenue rose 8% to a record $9.4 billion as comparable sales increased 5% year-over-year. Adjusted earnings per share jumped 20%. Analysts forecast the java shop will grow its profits at 15% annually for the next five years.</p>



<p>SBUX stock also pays a dividend that yields 2.6% annually and it has been growing the payout at a rate of over 8% a year for 13 years. This is another no-brainer buy this month at this deeply discounted level.</p>



<h2>Visa (V)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/06/visa-1600-300x169.jpg" alt="several Visa branded credit cards"><div>Source: Kikinunchi / Shutterstock.com</div></div><p>The last stock to buy without much thinking is <strong>Visa</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/v-stock-quote/"><strong>V</strong></a></span>), the No. 1 payments processor. It has some 4.3 billion Visa cards in circulation and generated $14.5 trillion in total payments and cash volume for the full fiscal year. Visa also enjoys immense profitability.</p>



<p>Because the payments processor merely <a href="https://investorplace.com/2024/03/the-smart-money-shift-3-stocks-to-buy-as-billionaires-abandon-nvidia/">lends it brand to credit issuers</a>, Visa&rsquo;s gross profit margins are 98%. Operating margins are an impressive 57% while net margins are only slightly lower at 50%. It makes the company a cash-generating machine.</p>



<p>Visa chooses to use a lot of that cash to return value to shareholders. Last October it announced it would be buying back $25 billion worth of stock, double the $12 billion it repurchased last year.&nbsp;</p>



<p>The payments company also pays a dividend that yields less than 1% annually. Yet it has been raising the payout at a torrid pace, hiking the dividend at almost 15% a year for the last five years. It just raised it 16% last year. Visa stock is a no-brainer stock to own now and for a lifetime.</p>



<p><em>On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/only-have-100-3-no-brainer-stocks-to-buy-in-april-2024/">Only Have $100? 3 No-Brainer Stocks to Buy in April 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Only Have $100? 3 No-Brainer Stocks to Buy in April 2024

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>The Biden administration has <a href="https://www.cnbc.com/2024/04/17/biden-administration-releases-new-student-loan-forgiveness-proposal.html">introduced a formal proposal</a> to forgive student loan debt, aiming to benefit millions and withstand legal scrutiny. This revised plan focuses on debt accrued beyond original loan amounts for certain low-income earners and cancels unpaid interest for all income levels.</p>



<p>While some investors have turned toward big tech and FAANG as winners as part of this deal, my thesis is centered around the fact that we as consumers tend to spend every dollar we have and then some.</p>



<p>With the potential for increased disposable income resulting from the student loan forgiveness plan, borrowers may be more inclined to seek out additional credit or financial services. This could translate into a surge in demand for loans, credit cards, and other financial products offered by institutions that cater to the younger generation.</p>



<p>The average <a href="https://www.earnest.com/blog/average-student-loan-payment/">monthly student loan payment is around $500</a>, and I think it&rsquo;s very possible that those who are used to paying this amount every month will redirect it to a new form of credit. Alternatively, I also think that these funds will be redirected directly back into the stock market via trading apps.</p>



<p>So here are three under the radar student loan stocks that stand to benefit from Biden&rsquo;s proposal.</p>



<h2>Robinhood (HOOD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/hood1600-300x169.png" alt="The Robinood app logo with the Robinhood (HOOD) website logo in the background."><div>Source: Fluna nightEtJ / Shutterstock.com</div></div><p>Known for its mobile-first brokerage services, <strong>Robinhood</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/hood-stock-quote/"><strong>HOOD</strong></a>) appeals to younger investors with its user-friendly interface and commission-free trades. It&rsquo;s also the ubiquitous name on trading and stock investing Discord groups and Subreddits.</p>



<p>The primary demographic for Robinhood focuses predominantly on a younger audience. Particularly, the platform is geared towards millennials, with a significant portion of its users being between the ages of 18 and 29.</p>



<p>After recording a <a href="https://investors.robinhood.com/news/news-details/2024/Robinhood-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx">surprise profit in Q4 2023</a>, the company aims to drive profitable growth throughout the year. This strategy is underscored by its plan to keep operational expenses and share-based compensation between $1.85 billion and $1.95 billion, a slight increase from 2023 levels&#8203;</p>



<p>As for its <a href="https://investors.robinhood.com/news/news-details/2024/Robinhood-Markets-Inc.-Reports-January-2024-Operating-Data/default.aspx">stock performance</a>, following its successful Q4 results, HOOD&rsquo;s shares surged. Analysts have adjusted their outlook positively, with JMP Securities, for instance, raising their price target to $25 from $23, maintaining an outperform rating.</p>



<h2>Affirm Holdings (AFRM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/afrm_affirm1600-300x169.png" alt="Smartphone with website of US financial technology company Affirm Holdings Inc (AFRM) on screen with logo Focus on top-left of phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p><strong>Affirm Holdings</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/afrm-stock-quote/"><strong>AFRM</strong></a>) provides buy now, pay later services, which are increasingly popular among younger consumers looking to manage spending through flexible payment options.</p>



<p>For fiscal year 2024, AFRM <a href="https://www.investing.com/news/stock-market-news/earnings-call-affirm-holdings-inc-q2-2024-results-optomistic-on-future-outlook-93CH-3298931">has set a positive outlook</a>, projecting a Gross Merchandise Volume (GMV) to exceed $25.25 billion, with an adjusted operating margin over 11%&#8203;. The company&rsquo;s focus remains on gaining market share and maintaining robust unit economics amidst an environment of high interest rates.<br><br><em>Bankrate</em> notes that 39% of U.S. adults <a href="https://www.bankrate.com/loans/personal-loans/buy-now-pay-later-survey/#half">have used at least one BNPL service</a>, indicating a broad adoption across various consumer segments. This widespread usage supports AFRM&rsquo;s projection of a significant Gross Merchandise Volume (GMV) growth to exceed $25.25 billion for 2024, as the demand for BNPL services continues to rise.</p>



<p>Gen Z are also key users of BNPL schemes, and I believe that companies like AFRM will see an uptick in sales due to this fact. It&rsquo;s therefore one of those student loan stocks for investors to consider closely.</p>



<h2>Block (SQ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/sq-1600-300x169.jpg" alt="Block logo over a background with former square logo. SQ stock."><div>Source: Sergei Elagin / Shutterstock</div></div><p><strong>Block</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/sq-stock-quote/"><strong>SQ</strong></a>) (formerly known as Square) offers mobile payment solutions that are popular among young adults, with services that cater to both personal and small business financial transactions.</p>



<p>Research shows that <a href="https://www.brookings.edu/articles/student-debt-forgiveness-would-impact-nearly-every-aspect-of-peoples-lives/">people tend to increase</a> spending on large purchases, entertainment, and savings for big life events once their student debt burden is reduced or removed. Notably SQ also offers users a way to buy and sell cryptocurrencies such as <strong>Bitcoin </strong>(<a href="https://investorplace.com/cryptocurrency/btc-usd/"><strong>BTC-USD</strong></a>) through its CashApp platform, which is a major draw card for the company.</p>



<p>I think that SQ is then uniquely positioned and somewhat underestimated as one of those student loan stocks to buy.</p>



<p>For SQ, the <a href="https://investors.block.xyz/overview/default.aspx">financial outlook</a> for 2024 appears robust, with a forecasted gross profit of at least $8.65 billion, slightly ahead of the market consensus of $8.55 billion. This forecast was presented in the context of their most recent quarterly results which saw SQ report a profit of 3 cents per share, surpassing analyst expectations by 1 cent.</p>



<p><em>On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> </em>InvestorPlace.com Publishing Guidelines</a>.<br></p>
<div><p>Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/forget-big-tech-these-3-under-the-radar-stocks-are-the-real-student-loan-winners/">Forget Big Tech, These 3 Under-the-Radar Stocks Are the Real Student Loan Winners</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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<p>If you&rsquo;re only looking for a risk-free, &ldquo;steady Eddie&rdquo; financial-sector holding, then you probably don&rsquo;t want to invest in <strong>Robinhood Markets</strong>&nbsp;(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/hood-stock-quote/"><strong>HOOD</strong></a></span>). Bear in mind, Robinhood isn&rsquo;t a traditional broker and trading platform. Still, risk-tolerant folks may find valid reasons to own Robinhood stock, so we&rsquo;re assigning it a &ldquo;B&rdquo; grade.</p>



<p>Robinhood became famous as a fee-free stock-trading platform. Now, the company is more diversified and even offers a <a href="https://finance.yahoo.com/news/robinhood-unveils-credit-card-further-092525568.html">credit card</a>.</p>



<p>But again, diversification doesn&rsquo;t make Robinhood completely risk-free for investors. As the company immerses itself in the volatile world of blockchain based assets, safety seekers might choose to steer clear.</p>



<h2>Robinhood May Benefit as Its Clients Mature </h2>



<p>Not long ago, KBW analysts <a href="https://finance.yahoo.com/news/robinhood-initiated-market-perform-kbw-094403702.html">initiated their coverage</a> of Robinhood stock with a &ldquo;market perform&rdquo; rating and a moderately optimistic $20 price target. In their view, Robinhood has room to potentially grow along with the wealth of its customers.</p>



<p>Unlike old-school, traditional brokers, Robinhood appeals to younger millennial and Generation Z/Zoomer investors. That&rsquo;s not necessarily a bad thing, since these traders should collectively control more wealth as they age.</p>



<p>Interestingly, the KBW analysts observed that Robinhood only controls an approximate 1% share of &ldquo;U.S. self-directed assets,&rdquo; but around a &ldquo;20% share of estimated total U.S. self-direct brokerage accounts.&rdquo; </p>



<p>Furthermore, the analysts believe that there&rsquo;s room for Robinhood to &ldquo;outpace the overall asset growth in the self-directed industry as its core client cohort matures.&rdquo;</p>



<p>This line of reasoning makes sense. A vast amount of wealth could transfer from legacy brokers to Robinhood in the coming years and decades. This, therefore, is a pillar of the long-term bullish argument for Robinhood stock.</p>



<h2>Robinhood Stock Gets Downgraded on Crypto Risks</h2>



<p>To counter the KBW analysts&rsquo; moderately bullish argument, Citigroup analyst Christopher Allen recently offered a much less optimistic take. </p>



<p>In fact, Allen actually <a href="https://www.barrons.com/articles/robinhood-stock-price-bitcoin-1517310e">downgraded</a> Robinhood shares from &ldquo;neutral&rdquo; to an outright &ldquo;sell&rdquo; rating. He also published a $16 price target on the stock, which is substantially lower than the KBW analysts&rsquo; $20 price target.</p>



<p>Allen made no bones about his cryptocurrency-related concerns. &ldquo;We see risks to [Robinhood] stock here on any material pullback&rdquo; in <strong>Bitcoin</strong> (<a href="https://investorplace.com/cryptocurrency/btc-usd/"><strong>BTC-USD</strong></a>) prices, he warned.</p>



<p>On this topic, Allen served up some startling stats. Per <em>Barron&rsquo;s</em>, Allen found that Robinhood stock has a &ldquo;92%&nbsp;correlation with Bitcoin&nbsp;in 2024 despite crypto only accounting for an estimated 13% of first quarter revenue.&rdquo;</p>



<p>Allen&rsquo;s downgrade may be harsh, but his point is duly noted. If you&rsquo;re risk averse or just aren&rsquo;t a Bitcoin believer, then you really shouldn&rsquo;t feel  comfortable investing in Robinhood.</p>



<h2>Robinhood Stock: Prepare for Growth and Volatility</h2>



<p>Because of the company&rsquo;s crypto connection, investing in Robinhood probably won&rsquo;t be an ultrasmooth ride. So, it doesn&rsquo;t make much sense for &ldquo;steady Eddies&rdquo; and Bitcoin critics to take a long-term share position in Robinhood. </p>



<p>On the other hand, Robinhood&rsquo;s investors may be rewarded with growth if they&rsquo;re willing to tolerate some volatility. After all, Robinhood has captured the attention and patronage of younger clients whose wealth should grow over time. Therefore, we&rsquo;re giving Robinhood stock a &ldquo;B&rdquo; grade, and we find it to be appropriate for some but not necessarily all portfolios.</p>



<p><i>On the date of publication, neither Louis&nbsp;Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.</i></p>
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AFRM

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SOFI

TDOC

TWLO

UBER

VCTR

VCYT

Earnings

Press Releases

Robinhood Reports Fourth Quarter and Full Year 2023 Results

General

Robinhood Markets, Inc. Reports January 2024 Operating Data

Robinhood Markets, Inc. to Present at the JMP Securities Technology Conference on March 4, 2024

Groundfloor's CEO Brian Dally Shares How The Platform Appeals To Younger Audiences And Self-Directed Investors

Robinhood Markets, Inc. Reports February 2024 Operating Data

Opinion

Thinking about trading options or stock in Intuit, Pinterest, Adobe, Eli Lilly, or Robinhood Markets?

Amid The Frenzy Around Bitcoin Prices, Another Revolution Is Quietly Taking Place Led By Companies Like DLMI: The Tokenization Of Real Estate Assets

Management

Robinhood Markets, Inc. Co-Founder Baiju Bhatt To Step Down as Chief Creative Officer

Legal

SHAREHOLDER ALERT: Robinhood Markets Investigated by Block & Leviton For Potential Securities Law Violations; Investors Who Have Lost Money Are Encouraged to Contact the Firm