Robinhood's New Gold Card Boosts Stock to 2-Year Highs

Robinhood Markets Inc (NASDAQ:HOOD) shares surged today following the announcement of its revolutionary Gold Card credit card. Offering 3% cashback on all purchases and zero annual or foreign transaction fees, the card is already causing a stir in the market. Points earned can be easily converted into cash for investment purposes, adding a unique twist to traditional rewards programs.

Investors Flock to HOOD as Traders Target Calls

Trading at $19.72, HOOD stock is up 2.3%, hitting a two-year high of $20.55. Riding a wave of bullish momentum since mid-February, with a notable post-earnings rally of 14%, the stock's upward trajectory is evident. Currently on track for its tenth consecutive weekly gain, HOOD has soared 55% since the beginning of the year.

Call traders are seizing the opportunity, driving Robinhood options volume to three times the norm, with 129,000 calls traded versus 17,000 puts. The weekly 3/28 20-strike call is particularly popular, signaling widespread optimism among traders.

Analysts, however, remain cautious, with 10 out of 14 firms maintaining a "hold" or worse rating on HOOD. Despite this, the current price of $19.72 stands at a significant premium to the 12-month consensus price target of $15.88.

Robinhood's financial performance continues to impress, with robust growth projections and an upward earnings trajectory. Analysts expect earnings per share (EPS) to surge by 137.7% for the current fiscal year, driven by a revenue increase of 14.1% in the current quarter alone.

In the last reported quarter, Robinhood Markets saw a 24% year-over-year increase in revenues, beating consensus estimates by 3.12%. Additionally, the company surpassed EPS expectations by a staggering 400%.

With a unique blend of innovation and financial prowess, Robinhood is poised to reshape the landscape of the financial industry, attracting investors and traders alike.