Robinhood Shares Surge Amid Crypto Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Should l Buy HOOD?
Source: Benzinga
- Crypto Market Influence: Robinhood's stock price is closely tied to the cryptocurrency market, with Bitcoin dipping near $60,000 on Thursday before rebounding to $68,000 on Friday, resulting in a 12.70% increase in Robinhood's shares, highlighting its sensitivity to market fluctuations.
- Revenue Model Insight: Robinhood attracts users with zero-commission trading, profiting through payment for order flow and interest on customer cash balances, meaning that increased trading activity in Bitcoin and other assets directly boosts Robinhood's revenue opportunities, further driving stock price growth.
- Current Technical Analysis: Robinhood's stock is currently trading 21.1% below its 20-day simple moving average and 34.7% below its 100-day SMA, indicating a bearish short-term trend; however, shares have increased by 51.48% over the past 12 months, suggesting a potential recovery phase as they approach 52-week highs.
- Market Support and Resistance: The key resistance level for Robinhood is $103.50, while the support level is $81.00; despite the current RSI of 15.26 indicating oversold conditions, the MACD remains below its signal line, reflecting ongoing bearish pressure and a complex market sentiment.
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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: 72.680
Low
130.00
Averages
156.24
High
181.00
Current: 72.680
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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- Management Potential: Should Robinhood be selected as a trustee, it could manage $1.2 billion in new assets annually, leveraging compounding effects to potentially grow each account to $51,000 over 18 years, showcasing substantial business potential.
- Investment Strategy Requirements: Funds in the accounts must be invested in mutual funds or ETFs tracking the S&P 500, ensuring long-term growth of investments while providing stable returns for investors.
- Market Impact Analysis: With nearly 3.6 million births in 2023 according to CDC data, if all newborns receive funding, it would generate significant management fees and trading commissions for firms like Robinhood, further solidifying their market position.
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- Tech Stock Recovery: Despite a severe selloff in software and AI-related stocks leading to one of the sharpest pullbacks in years, the market's rebound before the weekend indicates sustained investor interest in tech stocks, potentially boosting earnings for related companies.
- Improved Market Breadth: Financials, industrials, and select consumer names joined the rally, indicating improved market sentiment, while Bitcoin's rebound also lifted crypto-linked stocks, showcasing investors' preference for diversified investments.
- Analysts Warn of Volatility: Despite a strong market finish, analysts caution that volatility remains high, urging investors to closely monitor upcoming earnings reports and Federal Reserve policy signals to assess the sustainability of massive AI spending.
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- Market Share of Retail Investors: According to 'The Retail Investor Report,' retail investors accounted for approximately 25% of total equity trading volume in 2021, doubling from a decade earlier, highlighting their increasing significance in the market and prompting online brokers to adjust strategies to attract this demographic.
- Popularity of Robinhood: Robinhood has successfully attracted a large number of retail investors by offering commission-free trading and fractional share purchases, with its '100 Most Popular' leaderboard showing that the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust rank as the fifth and ninth most held securities, reflecting retail investors' preference for S&P 500 exposure.
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- Impact of Expense Ratios: The Vanguard S&P 500 ETF's net expense ratio of 0.03% is significantly lower than SPDR S&P 500 ETF Trust's 0.0945%, which can lead to substantial savings for long-term investors, further driving retail preference for Vanguard ETFs.
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- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
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- Importance of Investment Education: Mark successfully engaged his children in investment games, leading them to outperform the market in 2025, highlighting the significant potential of family education in fostering financial literacy.
- Values and Investment Decisions: An Italian investor reflects on whether to continue holding Robinhood, emphasizing the importance of balancing personal values with social responsibility in investing, showcasing modern investors' focus on ethics and accountability.
- Market Performance and Psychological Factors: Rich shares his strategy in the market game, indicating that psychological factors and strategic thinking are equally important in investing, especially when facing uncertainty, where adaptability is key to success.
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- Labor Data Impact: The upcoming nonfarm payroll report on Wednesday is expected to show an addition of 80,000 jobs, and if the data comes in weak, it could lead the Fed to continue cutting rates, which would positively impact the stock market, reflecting concerns about economic slowdown.
- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
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See More
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- Trump Accounts Overview: The Trump Accounts aim to provide $1,000 to U.S. children born between 2025 and 2028 to help them build savings, potentially creating $3.6 billion in new assets under management, significantly enhancing family financial security.
- Management Potential: Should Robinhood be selected as a trustee, it could manage $1.2 billion in new assets annually, leveraging compounding effects to potentially grow each account to $51,000 over 18 years, showcasing substantial business potential.
- Investment Strategy Requirements: Funds in the accounts must be invested in mutual funds or ETFs tracking the S&P 500, ensuring long-term growth of investments while providing stable returns for investors.
- Market Impact Analysis: With nearly 3.6 million births in 2023 according to CDC data, if all newborns receive funding, it would generate significant management fees and trading commissions for firms like Robinhood, further solidifying their market position.
See More
U.S. Stocks Hit Historic Highs as Tech Stocks Rebound
- Dow Jones Milestone: The Dow Jones Industrial Average surpassed the 50,000 mark for the first time, reflecting renewed investor confidence in technology and semiconductor stocks, which may drive future investment enthusiasm.
- Tech Stock Recovery: Despite a severe selloff in software and AI-related stocks leading to one of the sharpest pullbacks in years, the market's rebound before the weekend indicates sustained investor interest in tech stocks, potentially boosting earnings for related companies.
- Improved Market Breadth: Financials, industrials, and select consumer names joined the rally, indicating improved market sentiment, while Bitcoin's rebound also lifted crypto-linked stocks, showcasing investors' preference for diversified investments.
- Analysts Warn of Volatility: Despite a strong market finish, analysts caution that volatility remains high, urging investors to closely monitor upcoming earnings reports and Federal Reserve policy signals to assess the sustainability of massive AI spending.
See More
Retail Investors' Growing Influence in the Stock Market
- Market Share of Retail Investors: According to 'The Retail Investor Report,' retail investors accounted for approximately 25% of total equity trading volume in 2021, doubling from a decade earlier, highlighting their increasing significance in the market and prompting online brokers to adjust strategies to attract this demographic.
- Popularity of Robinhood: Robinhood has successfully attracted a large number of retail investors by offering commission-free trading and fractional share purchases, with its '100 Most Popular' leaderboard showing that the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust rank as the fifth and ninth most held securities, reflecting retail investors' preference for S&P 500 exposure.
- Rise of Bond ETFs: The Vanguard Total Bond Market ETF has become the tenth most held security on Robinhood, indicating retail investors' concerns about lofty stock valuations, especially as the Shiller P/E ratio of the S&P 500 approaches historical highs, leading them to seek safer income investments.
- Impact of Expense Ratios: The Vanguard S&P 500 ETF's net expense ratio of 0.03% is significantly lower than SPDR S&P 500 ETF Trust's 0.0945%, which can lead to substantial savings for long-term investors, further driving retail preference for Vanguard ETFs.
See More
Navigating Values in Investing Decisions
- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
See More
Navigating Values in Investing: Insights and Strategies
- Importance of Investment Education: Mark successfully engaged his children in investment games, leading them to outperform the market in 2025, highlighting the significant potential of family education in fostering financial literacy.
- Values and Investment Decisions: An Italian investor reflects on whether to continue holding Robinhood, emphasizing the importance of balancing personal values with social responsibility in investing, showcasing modern investors' focus on ethics and accountability.
- Market Performance and Psychological Factors: Rich shares his strategy in the market game, indicating that psychological factors and strategic thinking are equally important in investing, especially when facing uncertainty, where adaptability is key to success.
- Optimism and Long-term Investing: Retired coach Tom's story illustrates that through consistent long-term investing and rational decision-making, ordinary individuals can achieve wealth growth, emphasizing the importance of patience and optimism in the investment process, encouraging more people to believe in their investment capabilities.
See More
Investors Nervous About Robinhood's Bitcoin Correlation
- Labor Data Impact: The upcoming nonfarm payroll report on Wednesday is expected to show an addition of 80,000 jobs, and if the data comes in weak, it could lead the Fed to continue cutting rates, which would positively impact the stock market, reflecting concerns about economic slowdown.
- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
- Robinhood Trading Risks: Robinhood will report earnings on Tuesday, and due to its close correlation with cryptocurrency markets, investors are concerned, as the stock has dropped nearly 27% year-to-date, significantly underperforming the S&P 500's 1.3% gain.
See More
