Robinhood's New Venture: Robinhood Markets, Inc. is launching a futures and derivatives exchange and clearinghouse, enhancing its investment in prediction markets through a joint venture where it will be the controlling partner.
Market Response: Following the announcement, Robinhood's stock (HOOD) rose by 8.55%, with analysts optimistic about the potential for improved liquidity and monetization of prediction markets.
Analyst Insights: Goldman Sachs analyst James Yaro maintained a Buy rating on HOOD, highlighting that the joint venture could significantly enhance Robinhood's market control and liquidity options.
Risks and Considerations: Yaro noted potential risks, including reduced retail engagement and lower interest rates impacting Robinhood's revenue, while also mentioning manageable investment needs due to existing licenses and products.
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 151.63 USD with a low forecast of 68.00 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.
21 Analyst Rating
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 151.63 USD with a low forecast of 68.00 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.
14 Buy
6 Hold
1 Sell
Moderate Buy
Current: 116.970
Low
68.00
Averages
151.63
High
181.00
Current: 116.970
Low
68.00
Averages
151.63
High
181.00
Barclays
Overweight
downgrade
$171 -> $159
2026-01-08
New
Reason
Barclays
Price Target
$171 -> $159
2026-01-08
New
downgrade
Overweight
Reason
Barclays lowered the firm's price target on Robinhood to $159 from $171 and keeps an Overweight rating on the shares. The firm updated targets in the brokers, asset managers and exchanges group ahead of the Q4 reports. Total volumes across equities, options, and futures "rose nicely" quarter-over-quarter and volatility picked up sequentially, the analyst tells investors in a research note.
Barclays
Benjamin Budish
Overweight
maintain
$171
2025-12-31
Reason
Barclays
Benjamin Budish
Price Target
$171
2025-12-31
maintain
Overweight
Reason
Barclays analyst Benjamin Budish says Robinhood's preliminary December metrics indicate its transaction revenue could slightly miss estimates in Q4. Robinhood's December share picked back up in options and Bitstamp, but declined slightly in equities and more so in crypto app volumes, the analyst tells investors in a research note. The firm believes a larger miss relative to Q4 consensus estimates in crypto sales should be nearly offset by stronger other revenue, driven primarily by the prediction markets. It keeps an Overweight rating on Robinhood with a $171 price target.
Needham
Buy
downgrade
$145 -> $135
2025-12-29
Reason
Needham
Price Target
$145 -> $135
2025-12-29
downgrade
Buy
Reason
Needham lowered the firm's price target on Robinhood to $135 from $145 and keeps a Buy rating on the shares. The firm lowered its estimates and price targets across the cryptoasset sector as it sees continued weakness in crypto volumes for the next couple quarters. Even if crypto prices are near a bottom, retail volumes typically remain muted until momentum returns, the analyst tells investors.
Morgan Stanley
Equal Weight
maintain
$146 -> $147
2025-12-22
Reason
Morgan Stanley
Price Target
$146 -> $147
2025-12-22
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Robinhood to $147 from $146 and keeps an Equal Weight rating on the shares. Healthy transactional activity across brokers and exchanges in Q4 drives modest positive revision risk, notes the analyst in a preview. The analyst is raising Q4 EPS estimates by 5% on average, leaving the firm in-line with consensus, the analyst noted.
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.
