Key keywords: Robinhood HOOD stock, HOOD Q3 2024 earnings beat, retail trading volume growth, Robinhood crypto revenue, $500M stock buyback program, Fed rate cut outlook, zero-commission brokerage, meme stock trading rebound Shares of popular zero-commission brokerage Robinhood Markets Inc. (ticker: HOOD) are skyrocketing during Wednesday’s trading session, surging more than 27% as of midday to hit a 52-week high of $22.18, adding over $3.8 billion to the company’s market capitalization in just a few hours. The sharp rally comes directly on the heels of the company’s better-than-expected third-quarter 2024 earnings report, released after market close on Tuesday, which crushed Wall Street consensus estimates across all key metrics. Wall Street analysts had projected Robinhood would report adjusted earnings per share (EPS) of $0.12 on total revenue of $982 million for the quarter ending September 30. Instead, the company delivered adjusted EPS of $0.21, a 75% beat, alongside total revenue of $1.23 billion, up 46% year-over-year and 25% above analyst expectations. The strongest growth driver came from Robinhood’s crypto trading segment, which generated $427 million in revenue for the quarter, a 114% year-over-year jump fueled by the ongoing bull run in Bitcoin and other leading digital assets, which have rallied over 60% combined since the start of Q3. Retail trading activity also far outpaced forecasts: total trading volume on the platform rose 38% quarter-over-quarter, with volumes for AI-related large-cap tech stocks jumping 52% and meme stock trading volumes for assets like GameStop (GME) and AMC Entertainment (AMC) up 71% as retail investor sentiment hit its highest level since 2021. Robinhood also reported monthly active users (MAUs) of 23.4 million, up 8.3% quarter-over-quarter and far above the 21.7 million MAUs analysts had predicted, reversing three straight quarters of slow user growth. Additional bullish catalysts announced alongside the earnings report include a new $500 million share repurchase program, which the company says will launch before the end of 2024, and a 15% expansion of its high-yield cash account offering, which now boasts over 12 million users. Market analysts are also pointing to the upcoming Federal Reserve interest rate cut, widely expected in November, as an additional tailwind for HOOD stock: lower interest rates typically drive higher retail participation in equity and crypto markets, directly boosting transaction revenue for brokerage platforms. Following the earnings release, multiple Wall Street firms raised their price targets for HOOD stock: JPMorgan lifted its target from $16 to $24, while Goldman Sachs raised its target from $17 to $25, citing accelerating user growth and durable crypto revenue momentum as key reasons for the upgrade.