 A Robinhood director sold over $30 million worth of stock, which might usually be a worry to shareholders, though this time it shouldn't... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Gabriel Osorio-Mazilli 
Understanding incentives and narratives in the market is just as important as understanding its history; however, two truths remain constant through the test of time. People typically buy a stock to make a profit, but these same participants often hesitate to sell a stock just to realize those profits. Selling can be due to a variety of reasons, such as exercising stock options, fulfilling tax purposes, or simply restructuring a portfolio once a stock has become too volatile. Therefore, seeing a large investor (or even a company insider) sell a stock doesn’t necessarily mean faith has been lost or that bad news is brewing. This is the case for Robinhood Markets Inc. (NASDAQ: HOOD) and its director, Baiju Bhatt, who recently sold up to $31 million worth of Robinhood stock as of June 2025. The reason for selling may be up for debate, but the belief that various motivations can drive these selling activities holds true. Therefore, this should not discourage current or prospective shareholders. Another Side to the Coin At the same time that Bhatt sold this sizeable stake in Robinhood stock, another director bought in. Christopher Payne purchased up to $2 million worth of Robinhood shares during the same period. As the conclusion goes, this decision may have been made solely with the objective of generating a profit. That means this insider saw a bigger upside potential in Robinhood for the future. Even though some shareholders might be disappointed that the company was not chosen to be added to the S&P 500 index, the markets don’t see any reason to let go of this giant in the making. In fact, Robinhood stock rallied by 8% the week after the announcement that it would not be added to the index, a moment when most of the market thought a negative reaction would be the sure path to lower prices. As that wasn’t the case, a new question arose. Is there something happening within the company’s operations that could be fueling renewed optimism among insiders? Could this lead the stock to achieve a new all-time high after a year-to-date performance of just over 110%? The answer, as investors will discover, lies in the company’s fundamentals. The Best Business Model Today During periods of volatility, such as today’s stock market, most investors quickly gravitate toward safer stocks, which are considered noncyclical and less affected by economic fluctuations. In such situations, the technology sector often gets overlooked, but Robinhood stands out as a notable exception. This volatility is likely to keep driving Robinhood stock upward, as a recent survey shows that over 75% of American households have the majority of their net worth tied up in the stock market, outpacing fixed-income and real estate investments. Consequently, Robinhood, which has gained popularity through its retirement account services, is poised to benefit from its position as a leader in the retail brokerage market. However, there’s another favorable factor at play: a resurgence of volatility. The trading community across the United States is rapidly expanding, with most traders using a Robinhood account. This factor is significant because as volatility increases, more trades are likely to occur, generating additional fees from the various ways Robinhood monetizes each funded account and every trade those accounts execute. The Numbers Confirm the Story According to the most recent quarterly data, Robinhood reports up to $1 billion in revenue, representing a 115% increase compared to the previous year. This revenue is mostly attributed to the new services being added to the platform, such as futures trading and retirement services. But this wouldn’t be of any use without users. This is where Robinhood shines as well, posting 25.2 million funded customers this quarter and an 88% annual growth in assets under custody, reaching a high watermark of $193 billion, which breaks Robinhood out of the small leagues of retail brokerages. Furthermore, management knows its audience well, which is why it recently acquired Bitstamp. This cryptocurrency exchange platform will enable Robinhood to provide its users access to trading various cryptocurrencies as part of their daily activities and portfolio decisions, a hot topic in today’s market. A new ceiling might be underway as Robinhood loads its company up with more tailwinds, and the price action shows. Those who feared Bhatt's selling can now rest assured that his reasons were likely not tied to any negative view or expectation from the company, with all the evidence to back it up.  Read This Story Online | What if only 15 minutes with proven A.I. tech could reveal exactly which assets deserve your focus this week?
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| Written by Leo Miller 
Exciting news just rose to the forefront for cryptocurrency stock Coinbase Global (NASDAQ: COIN). On June 18, shares of Coinbase surged 16%. The United States government took an important step that benefits the firm’s future. The U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Passed in a commanding 68 to 30 vote, the bill establishes the first federal regulatory framework around stablecoin issuance. Crypto industry lobbyists were big-time proponents of the bill. However, the bill still needs to pass in the House of Representatives. One might assume that the overwhelming support in the Senate will translate to the House, but the calculus is not so simple. Is Coinbase ready for success, or are investors too optimistic? Why the GENIUS Act Is Huge for Coinbase The passing of the GENIUS Act is certainly one of the most historic moments in the cryptocurrency ecosystem, and it has big positive implications for Coinbase. The act allows non-banks to issue stablecoins, which is very important for Coinbase due to its partnership with Circle Internet Group (NYSE: CRCL). Circle is the non-bank operator of USD Coin (USDC), a stablecoin backed and pegged to the U.S. dollar and the second-largest dollar-backed stablecoin in the world. Coinbase earns 100% of the reserve income generated by USDC deposits on its platform. It also has an agreement with Circle; it receives 50% of the reserve income generated by USDC deposits outside of Coinbase. Coinbase generates a very significant amount of revenue from USDC. Last quarter, its USDC revenue came in at $298 million, representing over 15% of total net revenue. This revenue stream is also growing very fast, increasing by nearly 51% from the previous year last quarter. This is over double the 23% growth rate of Coinbase’s overall net revenues, highlighting its importance. The fact that the GENIUS bill allows non-banks to issue stablecoins means that this revenue stream could continue flowing to Coinbase uninterrupted. If it had not, USDC would face rigorous regulatory barriers that could greatly disrupt Coinbase’s revenues. More generally, the GENIUS Act provides legitimacy to the stablecoin market overall. It provides a bank-like regulatory framework. This involves directing regulators to create capital, liquidity, and risk management rules for stablecoin issuers. It also treats stablecoin issuers like financial institutions under the Bank Secrecy Act. This means they must have strong anti-money laundering programs. Although these rules will likely increase compliance costs, they should help increase trust in the industry as a whole. This is important to the overall proliferation of the stablecoin market, from which Coinbase can benefit. House Deliberation Could Reduce the Positive Effects of GENIUS There are some loose ends to tie up legislatively. The House will vote on the bill, but they will also reconcile it with the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. Importantly, both bills provide a path for non-banks to issue stablecoins. STABLE is generally less favorable to companies like Coinbase, imposing greater restrictions in certain areas. One of the main differences between the bills regards the issuance of stablecoins by non-financial companies. GENIUS makes it more difficult for these companies, like Meta Platforms (NASDAQ: META), for example, to issue stablecoins. GENIUS’s framework beating out STABLE’s on this issue would likely increase demand for Coinbase’s offerings, as there would be less competition. Government Action and Stablecoin Potential Place COIN in an Enviable Position Overall, the GENIUS news is great for Coinbase. Some combination of the GENIUS and STABLE bills seems likely to become law, which would be huge for Coinbase. It would allow the firm to participate in the strong growth some predict for the stablecoin market with relatively few speed bumps. Analysts at Citigroup recently put out an extremely bullish report on the future of stablecoins. At the end of March 2025, these analysts valued the global stablecoin market at $230 billion. The company predicts that by 2030, the size of the stablecoin market will reach between $500 billion and $3.7 trillion. According to these estimates, the stablecoin market will at least double in size. At most, it could expand by 1500%. Notably, these analysts' base-case scenario is $1.6 trillion, implying an increase in the stablecoin market of nearly 600%. Overall, the growth potential in the stablecoin market and positive U.S. government policies put Coinbase in a great spot. The stock may just be set up for a big-time bull run. Read This Story Online | |
| Written by Gabriel Osorio-Mazilli  Shares of Super Micro Computer Inc. (NASDAQ: SMCI) have been subject to significant volatility in recent months, largely due to negative headlines and other developments within the technology sector. However, most (if not all) of these negative outlooks have already been proven to be fixed and overcome, leaving an opportunity for current and prospective shareholders to take advantage of the upside.
With this in mind, the views on the broader semiconductor and chipmaking industry act as a significant tailwind for this company to push toward higher prices in the coming months. Connecting these broader themes at the industry level in the “top-down” analysis for Super Micro Computer will quickly turn to a “bottom-up” justification in the business fundamentals themselves. Investors can justify potential new positions in the company through a brief financial analysis and by considering potential catalysts in the future. Additionally, the high short interest in the stock acts as an upside tail risk, as the possibility of a short squeeze remains relevant for this stock’s future. This is what the industry looks like today. The Upcycle in Semiconductors Has Begun The industry dynamic in this space is made up of two primary cycles. The first is the research and development cycle, where companies spend time (and capital) developing the latest technology and products to be rolled out in the future. The second cycle is the sales cycle, where these new products are then rolled out into the market and adoption takes effect. As it stands today, with companies like NVIDIA Co. (NASDAQ: NVDA) rolling out their Blackwell super semiconductor in the latest quarter, investors might safely assume that the sales cycle is about to enter the industry. Since Super Micro Computer’s heat efficiency products are directly linked to Blackwell, this creates a tailwind for the stock. At a fundamental level, any success in NVIDIA’s new product will be reflected in new orders and demand for Super Micro Computer as well. That lays the foundation for better financial performance in the coming months, which, of course, will also tie in to better valuations. Momentum and Projections for Super Micro Computer According to the latest quarterly financial data, Super Micro Computer reported revenues of up to $4.6 billion, indicating an annual growth rate of as much as 19%. More than a fantastic quarter, the new momentum from the industry’s sales cycle has given management the confidence to forecast more growth. The outlook for the fourth quarter of 2025 is expected to be between $5.6 billion and $6.4 billion in revenues, indicating another quarter of double-digit growth that will aid in a higher valuation and momentum for the stock moving forward. Revenue, however, is vanity; cash flow itself is reality, and this is what that looks like for Super Micro Computer. Operating cash flow was reported at $795.9 million for the quarter, a significant jump from the net operating cash flow of $1.8 billion during the same quarter last year. This is the lifeblood of today’s industry theme, showing that Super Micro Computer was more focused on product development than collecting cash through sales last year. This year’s quarter reflects the broader impact of the sales cycle, generating attractive cash flow figures that justify a year-to-date performance of up to 46%, outperforming both the broader technology sector and the S&P 500 index. However, these numbers are likely already priced in; now, investors need to focus on the future. The Market’s Take on Super Micro Computer’s Future Wall Street analysts now expect to see up to $0.94 in earnings per share (EPS) for the fourth quarter of 2025, which means a jump of 203% from today’s reported $0.31 in EPS. Now, that is exactly the sort of momentum in bottom-line earnings that investors want to see when developing their buying views. As most are aware, the stock price generally follows the underlying EPS growth. This time, Wall Street analysts are aligned with the broader industry cycle and the future developments expected to come to Super Micro Computer as a result of NVIDIA’s successful launch of Blackwell. This setup might explain why institutional allocators from Inspire Investing decided to boost their holdings in Super Micro Computer stock by 19% as of early June 2025, bringing their net position to a high of $2.5 million today. While this may not be the largest positioning, investors need to know that the momentum that has been and likely will continue in the stock might attract further institutional buying. Read This Story Online |  |
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