The online brokerage firm Robinhood (HOOD.US) saw its stock price rise 9% on Wednesday following the optimistic outlook from Analysts and a significant regulatory settlement, reaching a new 52-week high during the trading session.
Morgan Stanley has included Robinhood in its list of "Best Financial Companies," primarily because various growth paths could lead to surprises. The firm pointed out that Robinhood is diversifying its services to capture a larger share from its existing 24 million customers while also attracting new users as it expands into more traditional Banks, lending, and Crediting products, which represents a sustainable business model.
On the other hand, this week, the USA Securities and Exchange Commission announced a settlement agreement involving a list of alleged misconduct. Two Robinhood brokerage entities will pay a fine of 45 million dollars.
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