Robinhood Stock In Focus After Entry Into Wealth Advisory With TradePMR Buy: Retail Stays Upbeat
By Stocktwits Inc | First Published Nov 19, 2024, 7:49 PM ISTRobinhood said it sees the $7 trillion RIA market as a major growth opportunity.
Shares of Robinhood Markets, Inc. ($HOOD) were attracting investor attention pre-market after the company announced its agreement to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs).
The $300 million deal, consisting of cash and stock, is expected to close in the first half of 2025, pending regulatory approvals and other conditions.
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Robinhood emphasized TradePMR’s strong industry presence, with over $40 billion in assets under administration and 25 years of expertise, positioning it as a critical asset to enhance Robinhood’s offerings for financial advisors and their clients.
Robinhood said it sees the $7 trillion RIA market as a major growth opportunity.
"The TradePMR team has one of the strongest RIA networks in the industry. We're excited to join forces to build a category-defining advisory platform for the next generation," said Robinhood CEO Vlad Tenev.
“The total investable assets held by Millennials is expected to grow over the next two decades with an estimated $84 trillion wealth transfer on the horizon,” the company said in a statement.
“Today, Robinhood has more than 24 million funded customer accounts, about 75% of which are Millennials and GenZ. We believe this acquisition is the next step in serving these investors as their needs evolve and mature.”
Retail sentiment for HOOD was ‘bullish’ on Stocktwits, reflecting optimism about the acquisition and Robinhood’s ongoing transformation.
Robinhood's stock hit a three-year high on Monday after Needham upgraded it to ‘Buy,’ citing potential gains from new crypto trading regulations under President-elect Donald Trump.
The company has evolved beyond its meme-stock trading roots, offering retirement accounts, credit cards, and cryptocurrency trading.
Robinhood shares have surged approximately 183% year-to-date, significantly outpacing broader market indices, as the company capitalizes on its expanding services and the generational shift in wealth management.
The stock was last down marginally before the bell. If pre-market losses hold, HOOD will be on track to snap a five-day winning streak.
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