Robinhood Markets Forecast: Shares Expected to Plummet by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy HOOD?
Source: Fool
- Significant Revenue Growth: Robinhood Markets reported a 100% year-over-year revenue increase in Q3, reaching $1.27 billion, demonstrating its success in attracting younger investors and indicating the sustainability of its business model.
- Dramatic Net Income Rise: The company's net income surged 271% year-over-year to $556 million, reflecting effective management in cost control and revenue growth, despite a 31% increase in operating expenses, which remains lower than revenue growth.
- Increased User Revenue: Average revenue per user rose 82% year-over-year to $191, enhancing the company's profitability and strengthening its position in the competitive fintech market.
- High Valuation Risks: With a forward P/E ratio and current P/E both around 44, and a price-to-sales ratio of 23 significantly above the five-year average of 7, Robinhood faces the risk of a sharp stock price decline by 2026 due to market over-optimism about its future growth.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 87.320
Low
130.00
Averages
156.24
High
181.00
Current: 87.320
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.
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- Platform Performance: Kalshi and Polymarket, the two largest prediction market platforms, have seen a year-to-date trading volume of $60 billion, surpassing the total volume of $51 billion for all of 2025, showcasing rapid market demand growth.
- Improving Regulatory Environment: Despite increasing regulatory scrutiny, analysts believe platforms like Kalshi and Polymarket will benefit from growing alignment with federal regulators (SEC, CFTC), enhancing market legitimacy and mainstream adoption.
- Positive Investor Reaction: Following these reports, Robinhood (HOOD) shares rose by 10% and Coinbase (COIN) increased by 6%, reflecting market optimism regarding the future growth of prediction markets.
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- Volume Surge: Robinhood Markets reported a trading volume of 51.3 million shares, approximately 64% above its three-month average of 31.3 million shares, indicating increased user engagement but also highlighting competitive pressures.
- Increased Competitive Threat: Charles Schwab's plan to launch a spot crypto trading platform for retail clients poses a significant threat to Robinhood's market share in crypto trading, potentially impacting its trading volumes and transaction-based revenues.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders may encourage greater participation among retail users, potentially increasing trading frequency, although this is countered by rising competition.
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- Surge in Trading Volume: The company's trading volume reached 51.3 million shares, approximately 64% above the three-month average of 31.3 million shares, indicating sustained market interest in Robinhood's platform, though it may be impacted by heightened competition.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders could enhance participation among core retail users, potentially increasing trading frequency, despite the competitive pressures from the crypto market.
- Intensified Market Competition: With Charles Schwab's crypto trading plans, Robinhood faces new competitive threats that could affect its trading volumes and pricing strategies, prompting investors to monitor whether future results will show an increase in retail trading volumes.
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- Competitive Threat: Charles Schwab's plan to launch a spot crypto trading platform for retail clients poses a potential negative impact on Robinhood's trading volumes and transaction-based revenue, particularly in the cryptocurrency sector.
- Regulatory Tailwind: The SEC's removal of the $25,000 minimum for pattern day traders could expand participation among Robinhood's core retail users, potentially increasing trading frequency despite the new competitive pressures.
- Market Reaction: Robinhood's stock closed at $86.85 on Thursday, down 0.54%, reflecting investor concerns over Schwab's new plans while also monitoring the impact of regulatory changes on trading activity.
See More
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- Profitability Improvement: Block expects a 26% adjusted operating margin in 2026, while PayPal generated $5.6 billion in free cash flow on $33.2 billion in revenue in 2025, showcasing the profitability advantage of established fintech players.
- Valuation Attractiveness: PayPal's stock currently trades 84% below its historical peak, with a forward price-to-earnings ratio of 9.1, highlighting its appeal as an investment opportunity amid market fluctuations.
- Diversity in Investment Strategy: When selecting stocks, investors should consider various factors such as growth, profitability, and valuation to develop a strategy that aligns with their individual investment philosophy, thereby maximizing returns in the fintech space.
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Prediction Market Volumes Set to Surge to $1 Trillion by 2026
- Surge in Market Volume: According to Bernstein's report, prediction market volumes are projected to reach $240 billion by 2026, representing a 370% increase from last year, indicating strong growth potential with an expected annual trading volume of $1 trillion by 2030.
- Platform Performance: Kalshi and Polymarket, the two largest prediction market platforms, have seen a year-to-date trading volume of $60 billion, surpassing the total volume of $51 billion for all of 2025, showcasing rapid market demand growth.
- Improving Regulatory Environment: Despite increasing regulatory scrutiny, analysts believe platforms like Kalshi and Polymarket will benefit from growing alignment with federal regulators (SEC, CFTC), enhancing market legitimacy and mainstream adoption.
- Positive Investor Reaction: Following these reports, Robinhood (HOOD) shares rose by 10% and Coinbase (COIN) increased by 6%, reflecting market optimism regarding the future growth of prediction markets.
See More
Robinhood Markets Faces Competitive Pressure Amid Crypto Launch
- Volume Surge: Robinhood Markets reported a trading volume of 51.3 million shares, approximately 64% above its three-month average of 31.3 million shares, indicating increased user engagement but also highlighting competitive pressures.
- Increased Competitive Threat: Charles Schwab's plan to launch a spot crypto trading platform for retail clients poses a significant threat to Robinhood's market share in crypto trading, potentially impacting its trading volumes and transaction-based revenues.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders may encourage greater participation among retail users, potentially increasing trading frequency, although this is countered by rising competition.
- Market Reaction: Robinhood's stock closed at $86.85, down 0.54% on Thursday, reflecting investor concerns over Schwab's new initiative while also monitoring upcoming results for signs of increased retail trading volumes.
See More
Robinhood Faces Competitive Pressure Amid Crypto Trading Developments
- Stock Price Movement: Robinhood Markets closed at $86.85, down 0.54%, reflecting investor concerns over increasing competition, particularly following Charles Schwab's announcement of a spot crypto trading platform.
- Surge in Trading Volume: The company's trading volume reached 51.3 million shares, approximately 64% above the three-month average of 31.3 million shares, indicating sustained market interest in Robinhood's platform, though it may be impacted by heightened competition.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders could enhance participation among core retail users, potentially increasing trading frequency, despite the competitive pressures from the crypto market.
- Intensified Market Competition: With Charles Schwab's crypto trading plans, Robinhood faces new competitive threats that could affect its trading volumes and pricing strategies, prompting investors to monitor whether future results will show an increase in retail trading volumes.
See More
Robinhood Slips as Schwab's Crypto Trading Plans Introduce Competition
- Volume Surge: Robinhood's trading volume reached 51.3 million shares, approximately 64% above its three-month average of 31.3 million shares, indicating increased user engagement but also heightened competitive pressure.
- Competitive Threat: Charles Schwab's plan to launch a spot crypto trading platform for retail clients poses a potential negative impact on Robinhood's trading volumes and transaction-based revenue, particularly in the cryptocurrency sector.
- Regulatory Tailwind: The SEC's removal of the $25,000 minimum for pattern day traders could expand participation among Robinhood's core retail users, potentially increasing trading frequency despite the new competitive pressures.
- Market Reaction: Robinhood's stock closed at $86.85 on Thursday, down 0.54%, reflecting investor concerns over Schwab's new plans while also monitoring the impact of regulatory changes on trading activity.
See More
Investment Trends in the Fintech Sector
- Revenue Growth Highlights: In 2025, five fintech companies including Lemonade, Nu Holdings, Robinhood, SoFi, and Upstart achieved at least 35% year-over-year revenue growth, with two exceeding 50%, indicating strong growth potential in the sector.
- Profitability Improvement: Block expects a 26% adjusted operating margin in 2026, while PayPal generated $5.6 billion in free cash flow on $33.2 billion in revenue in 2025, showcasing the profitability advantage of established fintech players.
- Valuation Attractiveness: PayPal's stock currently trades 84% below its historical peak, with a forward price-to-earnings ratio of 9.1, highlighting its appeal as an investment opportunity amid market fluctuations.
- Diversity in Investment Strategy: When selecting stocks, investors should consider various factors such as growth, profitability, and valuation to develop a strategy that aligns with their individual investment philosophy, thereby maximizing returns in the fintech space.
See More
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- AMD Stock Surge: AMD shares rose over 7% after Bernstein raised its price target from $235 to $265, with analyst Stacy Rasgon highlighting the company's benefits from strong server CPU demand, which is expected to enhance its market performance further.
- Intel Price Target Increase: Bernstein also lifted Intel's price target from $36 to $60, resulting in a nearly 5% stock increase, reflecting growing market confidence in Intel's future growth potential, which may attract more investor interest.
- Aehr Test Systems Order Boost: Aehr Test Systems announced a $41 million production order from a leading hyperscale AI customer, leading to an 11% stock increase, which not only strengthens the company's market position but also potentially drives future earnings growth.
- PPG Global Price Hike: PPG Industries announced a global price increase of up to 20% across its product portfolio, resulting in about a 5% stock rise, as this move addresses rising raw material and packaging costs, demonstrating the company's proactive strategy in navigating market challenges.
See More
