Robinhood stock jumps on $1 billion buyback plan

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Robinhood stock jumps on  billion buyback plan

Shares of Robinhood Markets (HOOD) popped in after-hours trading after announcing a $1 billion share buyback plan. According to a blog post, the company plans to start buying back shares in the third quarter of 2024 and execute the plan over the course of a two to three year period.

Yahoo Finance’s Julie Hyman and Josh Lipton discuss the breaking news.

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This post was written by Stephanie Mikulich.

Video Transcript

Breaking news here, Robin Hood shares are soaring after hours after the company said it will, it is authorized a repurchase program of up to a billion dollars worth of stock.

Now, this is over a 2 to 3 year period starting from the third quarter.

But nonetheless, I believe this is the first buy back that we’ve gotten from Ro.

And the company says, according to Jason Warick, the CFO as our business and cash flow continue to grow, we’re excited to announce this billion dollar share repurchase program to return value to shareholders.

Pretty brief statement here, Josh.

But uh seeing that pop in after hours trading, yeah, it’s so interesting, Julie, this is cut to see this sort of the transformation of Rob in the hood.

You know, you initially thought it was like commission free trading and now Vlad has them in credit cards and retirement accounts and just the way that product portfolio has changed there.

It’s, it’s, it’s just a, it’s a fun story to watch the transformation there.

Yeah.

Although it’s interesting because it’s still largely trades on enthusiasm for things like meme stocks, right?

And recently got a boost from that.

Um Bank of America as Craig Siegenthaler, who had been a long time bear on the stock double upgraded it.

So that helped give it a pop as well.

And the stock has done pretty well this year, it’s up almost about 61% but it has never come close to achieving the dizzying heights it did after game public.

And there was the sort of the initial meme stock frenzy, right?

So, um but to your point about information, it’s sort of grown up in a way, right?

Like we have seen the maturation of Vlad as a leader, we’ve seen the maturation of Robin Hood as a company.

Um And it seems like uh something like a stock buyback is sort of the next logical step in that process.

Your point.

What, what a move for this stock 100 and 30% over the past 12 months at this point, it’s a big one.

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