Robinhood stock price is firing on all cylinders, helped by the strong equity and crypto market. HOOD jumped by 206% in 2024, pushing its market valuation to over $34 billion. So, is this disruptor a good investment?

Robinhood is a good growth story

Robinhood Markets is a popular fintech company that successfully disrupted the financial industry. Its business model allows customers to buy stocks, cryptocurrencies, and options through their apps and its website.

HOOD introduced the commission-free buying stocks, an approach that has been embraced by other companies like Schwab and Interactive Brokers. It also pioneered the concept of gamification that has made it highly popular among young people.

HOOD makes most of its money through a concept known as Payment for Order Flow (PFOF), which lets market makers like Virtu Finance and Citadel pay it for directing orders to them. These market makers operate as wholesale shops and pay Robinhood a small commission.

The company has expanded its offerings and is now a major player in the subscription industry. Through Robinhood Gold, the firm charges customers $5 a month and then offers them returns by investing in safe government bonds. The subscription business helps it generate quality and predictable recurring model. 

Robinhood’s success is also because of its strong innovation record. It launched Robinhood Legend, a solution aimed at day traders that lets them buy and short assets on their browser. It also has a credit card that offers 3% cashback on all purchases.

All these initiatives have made HOOD a high growth company as its annual revenue moved from $277 million in 2019 to over $2.4 billion in the trailing twelve months (TTM). 

HOOD’s growth is continuing

Robinhood’s third quarter numbers showed that its business continued doing well as its revenue jumped by 36% to $637 million. 

Most of this revenue came from its transaction business, which made over $319 million. Net interest revenue rose to $274 million, helped by higher deposits and interest rates. 

The Fed has maintained higher interest rates in the past few years, helping companies generate interest income. In Robinhood’s case, the amount of money in its custody rose by over 76% to $152.2 billion. 

The other segment made $44 million, helped by ots gold subscriptions, whose subscribers rose to 860,000. Analysts expect that this business will continue doing well, as the company uses the Netflix model to gradually hike prices. 

Analysts are optimistic that Robinhood’s business will continue doing well in the foreseeable future. The average estimate of 14 analysts tracking the company is that its annual revenue will move to $2.74 billion this year and $3.11 billion next year. 

Robinhood is also expected to be highly profitable. The earnings per share (EPS) for the year is expected to be $1.14, followed by $1.3 in 2025. Robinhood has a long record of beating analyst forecasts, meaning that its business will likely do better.

The risk, however, is that HOOD does well when stocks and cryptocurrencies are thriving. If stocks fall as we predicted, there is a risk that it will also retreat since it is often common for a year’s best performers to lag in the following one.

Robinhood stock price analysis

The weekly chart shows that the HOOD share price bottomed at $7.62 in 2023 and has been in a slow uptrend since then. It has moved above the 38.2% Fibonacci Retracement level and the 25-week Exponential Moving Average (EMA). 

HOOD has been slowly forming a bullish pennant pattern, a popular bullish continuation sign. Therefore, the stock will likely continue surging in 2024, with the next viable reference point being the 61.8% retracement point at $55.30. The stop-loss of this trade is at $36, the 38.83% retracement point, which is 42% higher than the current level.

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Coinbase stock price has retreated for three consecutive weeks as Bitcoin and other altcoins have suffered a harsh reversal. After peaking at $350 earlier this month, the stock has plunged by almost 25%, moving to a bear market. So, is COIN still a good buy in 2025 as the Base Blockchain surges?

Bitcoin and altcoins have dived

Coinbase share price has dropped sharply primarily because of the performance of Bitcoin and other altcoins like Ethereum and Ripple. Bitcoin peaked at a record high of $108,000 and has retreated to $95,000. Similarly, Ethereum price found substantial resistance at $4,000 and then dropped to $3,500. 

Coinbase, a top crypto exchange, has a close correlation with Bitcoin and other altcoins. In most periods, its stock jumps when Bitcoin is rising for two main reasons. First, Coinbase is one of the biggest Bitcoin holders with 9,480 coins in its balance sheet. 

At the current price, these coins are valued at over $882 million, down from $1.08 billion when the coin was at its all-time high earlier this month.

Second, Coinbase and other crypto exchanges see higher volumes when Bitcoin and other cryptocurrency prices are soaring. This is notable since Coinbase makes most of its money from transaction costs. 

A good example of this performance is what happened in 2021 and 2022. Bitcoin and most altcoins surged in 2021, pushing Coinbase to make over $7.35 billion in revenues. 

The situation changed in 2022 as the Federal Reserve hiked interest rates and companies like Celsius and Terra crashed, bringing Bitcoin to $16,000. At the time, Coinbase’s revenue crashed by over 50% to $3.1 billion. Coinbase’s revenue in the trailing twelve months was $5 billion, helped by the crypto surge. 

A key issue that Coinbase is facing is that the centralized exchange industry has become highly competitive. As a result, the company has continued to lose market share to companies like OKX, Crypto.com, and Bybit. This performance is mostly because Coinbase has largely avoided listing some of the recently launched tokens.

Read more: Should you buy Coinbase stock after its post-earnings dip?

Base Blockchain could boost Coinbase stock

A major catalyst that is likely not priced in by market participants is Base Blockchain, a layer-2 network that Coinbase launched in 2023. In just one year, the network has become the sixth-biggest chain in the crypto industry, with a total value locked (TVL) of over $3.48 billion and its bridged funds to $14.7 billion. 

Base Blockchain has passed other large layer-2 networks that were established many years ago like Arbitrum, Polygon, and Optimism.

Protocols on Base have continued to see higher volume than most popular networks. Its DEX networks handled volume of over 181 billion since inception and $12 billion in the last 7 days. 

Therefore, there are chances that Base Blockchain will receive a multi-billion dollar valuation when it launches its token, which could happen in 2025. For example, Base is bigger than Cardano, a network valued at over $31 billion and Avalanche, which has a market cap of over $15 billion. 

Base is also bigger than Hyperliquid, whose fully decentralized valuation is $28 billion and Eigen, the biggest staking company with a valuation of $6 billion. Also, Arbitrum, the second-biggest L2 network has an FDV of $7.69 billion. Therefore, a Base airdrop will likely push Coinbase stock price higher.

COIN chart by TradingView

Technically, the COIN stock price has dropped to $265 and retested the handle section of the cup and handle pattern. It has remained above the 50-week Exponential Moving Average (EMA), a positive sign.

Therefore, the shares will likely rebound in January as crypto investors move back from the holiday season.

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The Stoxx 600 index has moved sideways in the last eight months as the initial momentum experienced in Q1 faded. It rose by about 6% and was trading at €508 on Friday. It has underperformed its American peers like the S&P 500 and the Nasdaq 100 indices. So, which were the top leaders and laggards in Europe in 2024?

Top gainers in the Stoxx 600 index

The Stoxx 600 index had some notable gainers in 2024. UCB stock jumped by over 145% in 2024, making it one of the best-performing companies in the index. It surged as the company boosted its outlook. The company expects revenues to be between €5.5 billion and €5.7 billion and adjusted EBITDA to grow between 23% and 24.5%.

Rolls-Royce Holdings was another top performer in the Stoxx 600 index as it jumped by over 90% during the year. This rally happened as the company continued to publish strong results, helped by the rising demand of its civil aviation and defense business. The management has also worked to reduce costs and boost efficiency.

Rheinmetall stock price soared by 115%, making it one of the best performers in Europe. This rally mirrored the performance of other military-industrial complex companies as geopolitical risks in Europe and Asia. The company has won several big orders from European and American countries. Other defense companies like Safran and Leonardo also did well.

European banks also did well during the year, taking advantage of higher interest rates. Unicredit share price rose by over 50%, continuing its trend as the best-performing European bank in the past few years. Its strong equity position has allowed the bank to accumulate shares in Commerzbank and Banco BPM.

The other top-performing European banks were Banco de Sabadell, Caixabank, Commerzbank, Natwest, and FinecoBank.

Other best-performing companies in the Stoxx 600 index were Zalando, Argen-X, Poste Italiene, Quilter, and Prosus.

Top laggards in the Stoxx 600 index

The Stoxx 600 index had some big laggards this year. Grifols’ share price fell by over 40% after a short-seller accused the company of manipulating its numbers. That crisis attracted the attention of Brookfield, a leading player in the private equity industry. Brookfield wanted to acquire Grifols until it dropped the bid in November. 

Kering’s share price fell by over 40% during the year. The company continued to report weak sales due to the performance of its Gucci brand in China. It has become one of the worst-performing luxury group companies, shedding billions of dollars in value.

Vestas Wind shares fell by 53% as woes in the wind energy industry continued. It has now dropped by almost 70% from its highest level during the pandemic. This performance differed with that of Suzlon Energy, whose shares rose by over 1,000% from the lowest point in 2022. 

The other top laggards in the Euro Stoxx 600 index were Abrdn, John Wood, Rio Tinto, Capita, Tullow Oil, Croda, and Spirax-Sarco Engineering.

Stoxx 600 index analysis

The weekly chart shows that the Stoxx 600 index, which tracks the biggest companies in Europe, jumped to a record high of €526. Since April this year, it has remained between the support and resistance levels at €495 and €526. 

The index has remained above the ascending trendline that connects the lowest swings since October 2022. It iis also above the support at €495, the previous all-time high. 

The Stoxx 600 index has remained above the 50-week and 100-week moving averages. It has also formed an inverse head-and-shoulders pattern, a popular bullish sign. Therefore, the stock will likely have a bullish breakout in 2025. This move will be confirmed if it rises above the year-to-date high of €530. If this happens, the next point to watch will be €550.

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The CAC 40 index, which tracks the largest companies in France, had a lackluster performance in 2024, underperforming most of its global peers. It fell by over 3% during the year, while the German DAX index rose by 18%, and the S&P 500 and Nasdaq jumped by over 20%. So, is it safe to buy French stocks in 2025?

Why French stocks plunged

There are three main reasons why the CAC 40 index fell even as the European Central Bank delivered four interest rate cuts during the year.

First, France went through a political crisis in 2024, leading to a credit rating downgrade by Moody’s, which noted material weakness of its finances. The crisis led to the collapse of Michel Barnier’s government. 

A key concern is that the French government has accumulated substantial budget deficits. The budget deficit is expected to be 6.1% of the GDP, higher than the expected 4.4%. This figure is much higher than EU guidelines, meaning France could face a debt crisis in the next decade. 

Second, the weakening Chinese economy had a major impact on French companies, many of which generate most of their sales there. China’s retail sales struggled, impacting companies like LVMH, Kering, and Pernod Ricard, which have one of the biggest weightings in the index.

Third, there are also concerns about the European economy, where these companies generate most of their sales. Some key European countries went through a deep slowdown, pushing the ECB to deliver four cuts to stimulate growth.

Top CAC index laggards and leaders

Most companies in the CAC 40 index were in the red in 2024. Kering stock plunged by over 40% in 2024 as the parent company of Gucci, Bottega Veneta, and Brioni, plunged by more than 40% during the year as the company issued multiple profit warning statements. 

Analysts believe that Kering is facing a more dire crisis as its flagship Gucci brand loses its appeal among wealthy people. Failure for the brand to recover could affect Kering’s business in the long term. 

Stellantis stock price crashed by 40% during the year as the company faced a major crisis that led to the CEO’s ouster. The main issue is that, like other European rivals, Stellantis is now contending with cheap Chinese vehicles that are slowly gaining market share. 

Stellantis shares also crashed because of its prolonged underinvestment in flagship brands like Chrysler, Jeep, Alfa Romeo, and Maserati. As a result, none of these brands have the appeal they once had in the past. A US politician is even calling for Stellantis to spin off its American brands.

Edenred stock also fell by over 40%, which the company blamed for the macro environment. In response, the firm increased its share repurchases to over 600 million euros and reiterated its commitment to hit 10 billion euros in revenues by 2030.

The other top laggards in the CAC 40 index were Dassault Systemes, L’Oreal, LVMH, and Bouygues, which all fell by over 10%. 

Conversely, the best-performing companies in the CAC 40 were firms like Accor, Schneider Electric, Essilor Luxottica, and Renault.

CAC 40 index analysis

The daily chart shows that the CAC 40 index has been in a strong downward trend in the past few months. This sell-off happened after the index peaked at €8,257 in May this year. Since then, the index has constantly made a series of lower lows and lower highs. 

The CAC 40 index has remained below the descending trendline that connects the highest swings since May. It has also moved below the 50-day and 100-day moving averages. 

Therefore, the index will rebound in 2025 as investors buy the dip in the recent laggards. This rebound will be confirmed if the stock rises above the descending trendline. If it happens, the next point to watch will be at €7,800, the highest swing in September.

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Palo Alto Networks stock price rose by 26% in 2024 as demand for cybersecurity continues rising globally. It also jumped because of the artificial intelligence tailwinds that have pushed other companies in the industry sharply higher. Its stock rose to a record high of $207 and then pulled back to the current $186. So, is PANW a good company to buy in 2025?

PANW is a good growth company

Palo Alto Networks is one of the fastest-growing companies in the cybersecurity industry. It offers network security, cloud security, and artificial intelligence solutions. The company takes a hybrid approach, offering hardware solutions like hardware firewalls and software solutions through a subscription model. 

Palo Alto Networks’ business has done well in the past few years as it added thousands of customers globally. Its top clients include Caesars Entertainment, Salesforce, ADT, Michelin, and Better Mortgage.

PANW’s business has been in a strong trajectory, with its annual revenue growing from $3.4 billion in 2019 to over $8 billion in 2023. This trend will likely continue in the coming years, albeit at a moderate pace.

Most importantly, the company has started to profit. In the trailing twelve months (TTM), it moved from an annual net loss of $498 million in 2012 to a net profit of over $2.7 billion.

The most recent results showed that the company’s business continued doing well in the last quarter, helped by the concept of platformization. Platformization is a process where companies consolidate their security functions to reduce their complexity.

The results showed that its Q1’25 revenue came in at $2.1 billion, a 14% annual increase, beating what analysts expected. Its next-gen security ARR rose to $4.52 billion, higher than the upper side of its guidance.

The management expects the business to continue doing well. Its hope is that its NGS ARR for the second quarter will be between $4.7 and $4.75 billion, while its revenue will rise by between 12% and 14% to between $2.22 billion and $2.25 billion.

Wall Street analysts are optimistic that the company will continue to have positive double-digit growth metrics for a while. The average estimate among 50 analysts is that revenue in the current financial year will grow by 14% to $9.15 billion, followed by $10.58 billion in the next one. 

Analysts are also moderately bullish about the Palo Alto Networks stock price, which they expect will grow to $204 from the current $186. 

Read more: Cramer advises buying this stock-split company amid post-earnings dip

Palo Alto Networks stock price analysis

The weekly chart shows that the PANW share price has been in a slow uptrend in the past few years and reached a record high of $207 in December. It has formed an ascending channel shown in black and moved slightly below the key support at $190.

The Relative Strength Index (RSI) has also formed an ascending channel. It has remained above the 50-week and 100-week moving averages. Therefore, the stock’s outlook is neutral with a bearish bias. A move below the lower side of the channel will point to a drop to $150.

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