Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.
Forget DOGE, Here's 1 Stock to Invest in the Next Crypto Bull Market
The cryptocurrency mania has begun, which means market participants should brace for Bitcoin-dominated headlines over the next 18 months. Moreover, the Donald Trump administration is expected to be crypto-friendly, which should accelerate the widespread adoption of these digital assets.
In the last two weeks, several cryptocurrencies, including Bitcoin (BTCUSD), Solana (SOLUSD), and Dogecoin (DOGEUSD), have gained momentum following the election results in the U.S. Valued at $55 billion by market cap, Dogecoin is among the 10 largest cryptocurrencies globally. In the last year, DOGE prices have risen almost fivefold due to the recovery in Bitcoin and other cryptocurrencies.
Recently, Dogecoin prices increased after Elon Musk posted that he will lead the Department of Government Efficiency (DOGE). Notably, Musk’s relationship with Dogecoin grew increasingly prominent due to his influential social media presence. During the last bull run, Musk frequently tweeted about Dogecoin, posting memes and playful comments that drove the cryptocurrency’s popularity higher, as investors responded enthusiastically to these endorsements.
Now, with Musk as the co-head of DOGE, crypto investors can continue to expect regular tweets and memes from the maverick Wall Street executive.
Dogecoin Remains a High-Risk Bet
Launched back in 2013, Dogecoin is a meme coin, making it vulnerable to hype and speculation. The crypto touched record highs in mid-2021 primarily due to the hype and buzz created by the Dogecoin community.
Moreover, the past decade has seen a sizeable expansion of the memecoin universe, increasing the competition for Dogecoin. That said, the cryptocurrency enjoys a unique relationship with Elon Musk, also known as the Dogefather, resulting in a resurgence in its price in recent months.
However, for the cryptocurrency to remain a viable long-term bet, Dogecoin’s blockchain network has to showcase an ability to rapidly scale transactions at a low cost. Instead, investors looking to gain crypto market exposure can consider buying Robinhood (HOOD) shares. Let’s see why.
Robinhood Adds New Cryptocurrencies
Robinhood (HOOD) is a low-cost discount broker in the U.S. that allows retail investors to buy and sell cryptocurrencies. Last week, Robinhood announced the addition of new cryptocurrencies, such as Solana, Pepe, Cardano (ADABTC), and XRP (XRPUSD) to its U.S. platform, which means you can now trade in 19 cryptocurrencies on this booking platform.
“We’ve consistently heard from our customers that they want access to more digital assets, and we’re excited to continue expanding our crypto offering,” said Johann Kerbrat, VP and GM of Robinhood Crypto. “With lower barriers to entry, we believe crypto presents an opportunity for those who have been historically left behind by the traditional financial system.”
Pepe is also a meme coin, and it surged over 50% following Robinhood’s announcement. Interestingly, Robinhood removed Solana and Cardano from its platform earlier this year due to regulatory concerns after the SEC filed lawsuits against several crypto exchanges.
Robinhood’s expanded access for digital assets follows closely on the heels of investor enthusiasm tied to Trump’s pro-crypto stance, which could result in higher crypto trading volumes for the company amid improving investor sentiment.
Valued at a market cap of $28.6 billion, Robinhood’s sales in the last 12 months totaled $2.4 billion, up from $1.86 billion in 2023. In the last four quarters, Robinhood has reported a free cash flow of $2.2 billion, compared to $1.18 billion in 2023 and an outflow of $880 million in 2022.
Out of the 17 analysts covering Robinhood stock, eight recommend “strong buy,” eight recommend “hold,” and one recommends “strong sell,” for a “moderate buy” consensus.
The average target price for HOOD stock is $27.12, a discount to Friday's close at $32.32. However, priced at 12x trailing FCF, HOOD stock is cheap, and might deliver outsized returns to shareholders.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
