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Robinhood Markets, Inc. (HOOD), the financial services company known for its user-friendly app and zero-commission trading, has come a long way since its involvement in the meme-stock frenzy a few years ago.

Social media was abuzz with the story of Keith Gill buying a stake in Chewy. Even GameStop (GME), the original initiator of the meme-stock saga was in the news a few weeks ago as Keith Gill resurfaced with a fresh stake in the company.

One might mistakenly think that another familiar name would pop up on the mention of these stocks: Robinhood!

After all, it was Robinhood that made it easier for people to trade stocks from their smartphones. Some made money and some lost it. Robinhood was accused of stock manipulation by retail investors.

But this time was different. And for good reason. Nobody blamed Robinhood. Because the company has moved on, focusing on becoming a healthier and more diversified company.

Broadening its global footprint

In early 2024, Robinhood achieved a significant milestone by launching in the UK, marking Robinhood’s third effort to expand internationally. The features offered were initially limited to the offering of 6,000 US stocks and 24-hour trading five days a week.

Another one of its recent moves is the acquisition of Bitstamp, a prominent cryptocurrency exchange, for approximately $200 million in cash. This allows Robinhood to take a chunk of the global cryptocurrency market.

In its most recent quarterly earnings, the income from account interest and Robinhood Gold account for around 30% of the company’s total revenue. Crypto trading revenue is anticipated to more than double year-on-year to around $80 million. The company is diversifying and it will reflect in the results down the road.

Robinhood acquires AI-powered investment platform

In a recent development, Robinhood is working towards including an extensive range of AI powered tools for the benefit of investors through the acquisition of AI-driven investment platform Pluto Capital, Inc.

According to the California-based company, Menlo Park, this advancement would result in improved data analytics, tailored investment strategies, active insights, and portfolio optimization for the investors.

A performance worth remembering

The stock has returned 78% YTD! That’s quite a performance and shows how the company has come a long way.

Some might argue that the current stock price is still well below the IPO price of $38. That’s true and it reflects how badly beaten the stock was as it entered single-digits two years ago.

Is it too late to jump in?

Nobody can predict when the right time to enter a stock. But if you look at what Robinhood has achieved in the last 6 months, you’ll notice a management that is working hard to make the company successful.

It is now transforming from a meme-stock enabler to a well-rounded financial services company. The management is battle-hardened, and is just coming out on the other side with some great achievements to show. So yes, its never too late to back good management.

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