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Financial Stocks Weekly Gain: Coinbase, Robinhood, CleanSpark (NYSE:FDS) Financial Stocks Weekly Gain: Coinbase, Robinhood, CleanSpark (NYSE:FDS)

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Torsten Asmus

The financial markets witnessed significant gains this week, with notable upward surges from several key players. Among the top gainers were two cryptocurrency-related companies, two insurers, and a retail trading platform. These positive movements reflect a dramatic turn in fortune for the industry, promising rewards for investors positioning themselves advantageously.

Financial stocks with a market capitalization exceeding $2 billion closed the week ended Feb. 16 in the green. The Financial Select Sector SPDR ETF (NYSEARCA:XLF) made a remarkable advance of 1.4%, outstripping the S&P 500’s 0.4% decrease.

Bitcoin’s strong performance continued to underpin the robust showing, with its miner CleanSpark (NASDAQ:CLSK) leading the pack, experiencing a massive 28% jump. The company’s announcement of an enhanced operational hashrate following its expansion in Sandersville, Georgia, generated further confidence among investors.

Coinbase Global (NASDAQ:COIN), a prominent cryptocurrency exchange, clinched the second spot, rising by an impressive 27%. The surge was attributed to both bitcoin’s extended bull run and the company’s better-than-expected Q4 earnings. Notably, KBW turned more bullish on COIN following its rejuvenated financial performance.

In the world of insurers, Mercury General Corp. (NYSE:MCY) gained 25% fueled by stronger-than-expected earnings and revenue for Q4. Meanwhile, retail trading app Robinhood Markets (NASDAQ:HOOD) surprised the market with a profitable Q4, propelling its stock up by 21.2%. Kinsale Capital Group (NYSE:KNSL), a property and casualty insurer, rounded out the five biggest winners with a substantial 20.5% gain, driven by Q4 earnings that topped Wall Street expectations.

The shift in sentiment also saw some firms facing downward pressure. AI-driven lending platform Upstart (NASDAQ:UPST) experienced the most significant decline, dropping by 22.7% after its 2024 revenue guidance fell short of Wall Street expectations. Brighthouse Financial (NASDAQ:BHF) slid by 9.6% following a Q4 earnings report that significantly underperformed analysts’ forecasts.

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Moody’s (NYSE:MCO) issued weaker-than-hoped 2024 guidance and reported less-than-stellar Q4 earnings, resulting in an 8.5% retreat. Freedom Holding (NASDAQ:FRHC), a Kazakhstan-based investment bank and brokerage, also dipped by 4.5%. Additionally, financial data company FactSet Research Systems (NYSE:FDS) closed the week with a 4% loss.