Shares of Robinhood Markets
The surge in valuation comes after fourth-quarter financial results and during a surge in cryptocurrency trading. Another item might be adding to the recent success and valuation increase for Robinhood.
What Happened: Robinhood announced the launch of 24-hour trading for a limited number of stocks back in May 2023.
The number of offerings and recently shared an update on how successful and how important 24-hour trading is for the company.
Robinhood announced it has passed $10 billion in 24-hour trading in less than a year of availability. The company said that on its busiest days, around 25% of total daily trading volume comes outside the traditional market hours of 9:30 a.m. ET to 4 p.m. ET.
"The news cycle, world events, and market-moving events like earnings often happen outside of US East Coast business hours. With 24-hour market, customers finally have the flexibility and convenience to investor on their own timelines - not Wall Street's," the company said.
Overnight session trading, which is defined as Sunday to Friday from 8 p.m. ET to 7 a.m. ET, grew each month since September 2023.
What's Next: In February, the company saw its highest average daily trading volume for overnight - 1.6x higher than January and 2x higher than December.
The figure could grow in March with the company stating that the evening of March 3 and morning of March 4 marked the biggest overnight volume trading day for the company.
Robinhood expanded its offerings of stocks and ETFs that can be traded during the overnight trading session, with 922 current symbols offered.
"We believe the future of investing is here, and it's around the clock," the company stated. "Over the past several weeks and months, we've seen a significant shift in 24-hour market trading activity and a notable increase in adoption by Robinhood customers outside of traditional market hours."
HOOD Price Action: Robinhood shares are up 1% to $16.61 versus a 52-week trading range of $7.91 to $17.22.
