Robinhood Sheds Its Meme Stock Skin, Emerges As Full-Fledged Fintech Player

Robinhood Markets, Inc. (NASDAQ:HOOD) shares moved lower on Thursday, despite delivering stronger-than-expected second-quarter results.

The stock and cryptocurrency trading platform reported second-quarter revenue of $989.0 million on Wednesday, up 45% year-over-year. The revenue beat a Street consensus estimate of $898.95 million, according to data from Benzinga Pro.

Several analysts have weighed in on the stock with updated price forecasts. JP Morgan’s Kenneth B. Worthington reiterated a Neutral rating while raising his price forecast from $98 to $104.

Also Read: Dow Analysts Slash Their Forecasts After Weak Q2 Results

Needham’s John Todaro maintained a Buy rating and significantly lifted his price forecast from $71 to $120. Meanwhile, Cantor’s Brett Knoblauch reaffirmed an Overweight rating and increased his price forecast from $100 to $118.

JP Morgan’s Take

Worthington noted that while Robinhood delivered strong top-line results and kept operating expenses disciplined at $550 million in second quarter of 2025, the quarter also reflected the platform’s growing maturity, with multiple products and business lines performing well.

The analyst highlighted Robinhood’s progress in moving beyond its earlier dependence on meme-stock trading and acknowledged management’s solid execution, but pointed out that the platform still lags larger rivals in product breadth and scale.

Additionally, he expressed caution regarding the long-term profitability of Robinhood’s smaller-sized accounts. The analyst raised the fiscal year 2025 adjusted earnings per share forecast from $1.31 to $1.53.

Cantor’s Perspective

Knoblauch highlighted that the firm’s third quarter is off to a strong start, with July net deposits surpassing $6 billion and equity and options volumes expected to hit record highs amid renewed interest in meme stocks.

The analyst noted that continued product innovation is driving user growth and expanding Robinhood’s share of customer wallets, a trend expected to strengthen with the upcoming launch of Robinhood Banking in the fall.

While shares are already up 185% year-to-date compared to the S&P 500’s 8%, Knoblauch acknowledged that some investors may feel they missed the opportunity to buy in.

Knoblauch projected a 6% increase in crypto volume for 2026, assuming a like-for-like comparison with Bitstamp’s 2025 figures, though he expects a down year based on typical crypto market cycles.

Needham’s Viewpoint

Todaro stated that Robinhood is performing strongly across its business, prompting an upward revision in estimates and price target.

The analyst expressed increased confidence in the company’s ability to drive operating leverage, raising the projected 2026 EBITDA margin to approximately 65%.

Todaro also raised the forecast multiple, citing reduced regulatory risks around Robinhood’s crypto offerings, including staking, tokenized assets, and prediction markets.

The analyst raised the fiscal year 2025 revenue estimate to $4.342 billion from $3.941 billion.

Price Action: HOOD shares are trading lower by 1.68% to $104.32 at last check Thursday.

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