Morgan Stanley's profit more than doubled in the fourth quarter, fueled by a wave of dealmaking and stock sales that drove its revenue to a full-year record.

Robinhood Markets (NASDAQ:HOOD) shares gained 3.8% in Friday morning trading after Morgan Stanley Research moved the Overweight-rated retail trading app to top pick, owing to "many vectors for growth that’s not yet reflected in valuation and the shareholder base.

Morgan Stanley said its profit more than doubled in the fourth quarter, fueled by its investment banking and trading businesses. Profit surged 145% to $3.71 billion. That amounted to $2.22 per share,

Shares of Morgan Stanley gained in early trading Thursday, after the bank and broker beat both profit and revenue expectations for the latest quarter, fueled by strength in the equity and bond trading businesses.

Morgan Stanley easily beat fourth-quarter profit and revenue estimates on strong equity trading and IPO activity.

The bank's massive wealth management business will be helped by high stock market values in the fourth quarter, which inflates the management fees it collects.

Morgan Stanley’s shares rose 2.8% on Thursday after the lender topped the market estimate for fourth-quarter profit on higher investment banking and equity revenue. The bank’s net earnings more than doubled to $3.