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,