Robinhood Integrates Prediction Markets, Boosting Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Potential: Prediction markets are projected to exceed $1 trillion in annual trading volume by 2030, and Robinhood's integration positions it to capitalize on this emerging sector, enhancing its competitive edge.
- User Base Expansion: With 26.9 million funded accounts, Robinhood is still behind Charles Schwab's 38.2 million, but the potential wealth transfer from younger investors offers significant growth opportunities for the future.
- Revenue Growth Expectations: Robinhood generated $4.2 billion in revenue over the past 12 months, with forecasts of $5.5 billion this fiscal year and $6.4 billion next year, indicating robust business momentum.
- Strong Stock Performance: Robinhood's stock has surged over 110% in the past year, and despite a current price-to-sales ratio of 23, it remains an attractive long-term investment, especially if market volatility leads to a correction in some of those gains.
Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 107.000
Low
130.00
Averages
156.24
High
181.00
Current: 107.000
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
