Robinhood

Robinhood shares dropped over 5% to a two-week low after the Justice Department charged employees Hefu Chai and Huaisong Xiang with fraud for allegedly using confidential token-listing information to trade perpetual futures and profit from memecoins and trades on Hyperliquid. Prosecutors say each employee earned more than $50,000; both were designated as "Coin Aware Individuals" barred from trading around new listings. Robinhood says it investigated the matter and reported it to regulators, and an attorney for Xiang says he denies the charges. » More on forbes.com

Robinhood Markets has over 24 million customers and a record $140+ billion in custody of customer assets. An unexpectedly strong midquarter trading update and raised annual targets triggered a key turning point. The company is increasingly focusing on higher-margin offerings such as 24/5 trading, subscription models (Robinhood Gold), interest-bearing cash balances and expansions in Europe. » More on finanzen.net

ARK Invest bought shares of Robinhood after trimming its position over the summer, citing stronger fundamentals: event contracts revenue scaled to $156 million in Q2 and surpassed crypto, platform assets rose to $384 billion with $4 billion net deposits in August, and margin balances climbed to $21.5 billion. These trends point to deeper customer engagement and multiple revenue streams for Robinhood, though volumes have cooled since a June peak. The author rates Robinhood as a hold given a valuation near 39 times projected 2027 earnings, not a clear buy at current levels. » More on finance.yahoo.com