Key Stats for Robinhood Stock
- 1- Year Price change for Robinhood stock: 54%
- $HOOD Share Price as of Feb. 9: $87
- 52-Week High: $154
- $HOOD Stock Price Target: $146
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What Happened?
Robinhood (HOOD) stock received a boost on Monday after Wolfe Research upgraded the shares to “Outperform”, citing strong growth in prediction markets that should offset weakness in crypto trading.
The upgrade comes as Wall Street analysts become more optimistic about the brokerage platform’s ability to diversify its revenue beyond traditional trading.
Wolfe analyst Sharon Leung told clients that Robinhood’s 2027 earnings estimates have jumped more than 60% over the past year. The firm believes prediction markets represent a durable new business line that can mitigate volatility in other areas, such as cryptocurrency.
“We view most of the sources of EPS improvement as fairly durable, with higher prediction market volumes offsetting pressures in other areas such as crypto,” Leung wrote in a Sunday note.
At a recent Wolfe Wealth Symposium, Robinhood’s Chief Brokerage Officer, Steve Quirk, highlighted the platform’s rapid expansion into prediction markets.
- Since launching around the November election, Robinhood now offers over 1,000 contracts across sports, cultural events, and economic indicators.
- The company recorded its highest prediction market volumes ever in October, surpassing the entire third quarter’s activity.
Quirk noted that prediction markets attract millions of users to the platform on weekends, when traditional markets are closed. “We have millions of people on Robinhood on a Sunday, billions on a Saturday morning, which normally wouldn’t happen,” he said.
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What the Market Is Telling Us About HOOD Stock
The upgrade reflects growing confidence that Robinhood stock can sustain its momentum even as crypto trading cools.
Wolfe sees “ample room” for prediction market revenue to expand, though the analysts acknowledged risks from potential state-level restrictions and legal challenges facing the industry.
Investors are clearly optimistic about the company’s diversification strategy.
Robinhood stock has surged 54% in the past year as the platform attracts larger, more active traders. The company’s margin lending book has quadrupled over the past 18 months, while assets in its advisory product, Strategies, have reached $1 billion just seven months after launch.
“While we still have mixed feelings about HOOD leaning into sports betting in Prediction Markets, the heads of the regulatory agencies have a more lax stance here,” Leung said, suggesting the regulatory environment may be more favorable than expected.
With Robinhood stock trading 43% below its 52-week high and analysts growing more bullish on its earnings power, the platform’s ability to innovate beyond traditional brokerage appears to be paying off.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
