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On Thursday, Bernstein SocGen Group significantly increased the price target for Robinhood Markets (NASDAQ:HOOD), from $51.00 to $105.00, while maintaining an Outperform rating on the stock. Currently trading at $55.91, the stock has delivered remarkable returns of 372% over the past year. The revision follows Robinhood’s impressive performance in the fourth quarter, where the company reported its first $1 billion revenue quarter. According to InvestingPro data, the company maintains a GREAT financial health score, with particularly strong momentum metrics. This milestone was primarily driven by a 487% sequential quarter-over-quarter growth in crypto revenues, which also marked a 733% increase year-over-year.
The fourth quarter, which coincided with the election period, was anticipated to be a turning point for cryptocurrency-related revenues. According to the analysts, the general market consensus has been adjusting its estimates post-election but still overlooks the fundamental shifts in Robinhood’s business model and the potential for significant expansion in its revenue sources. Robinhood’s strategy has been highlighted as building a comprehensive global financial ecosystem that encompasses various asset classes, including equities, cryptocurrencies, tokenized securities, stablecoins, and prediction markets.
The firm’s analysts point out that Robinhood is capitalizing on the use of blockchain technology to enhance its operational efficiency. With the upward revision of estimates for the years 2025 and 2026, the analysts’ outlook is buoyed by the company’s crypto growth strategy. The analysts’ commentary emphasized the company’s transition to a positive earnings per share (EPS), which has led to a shift in valuation methodology, focusing solely on an earnings-based multiple and moving away from a sales multiple.
The endorsement from Bernstein SocGen Group, naming Robinhood as their "best-idea for 2025," reflects the firm’s confidence in Robinhood’s trajectory and its ability to capitalize on the expanding opportunities within the cryptocurrency market and beyond. With analyst targets ranging from $29 to $105 and a strong six-month return of 203.69%, Robinhood’s stock price target reflects an optimistic view of its future financial performance.
In other recent news, Robinhood Markets has been under the spotlight following a series of positive developments. Analysts from Keefe, Bruyette & Woods maintained their Market Perform rating on Robinhood, highlighting that the company’s adjusted earnings per share (EPS) of $0.54 surpassed both their estimate and the consensus. This was attributed to higher-than-expected revenues and lower stock compensation expenses.
Citi analyst Christopher Allen increased the price target for Robinhood to $60, citing the company’s robust fourth-quarter performance. Allen also noted the correlation between Robinhood’s stock performance and cryptocurrency prices, specifically Bitcoin. Meanwhile, JMP Securities raised their price target for Robinhood to $77, highlighting the company’s expansion into new markets and potential for further innovation.
Barclays (LON:BARC) analyst Benjamin Budish also increased the price target on Robinhood to $76.00, following the company’s fourth-quarter results, which surpassed Wall Street’s revenue and adjusted EBITDA expectations. Budish noted that Robinhood’s momentum carried into January, evidenced by robust transaction activity, growth in margin loans, and net deposits. Lastly, KeyBanc Capital Markets updated its outlook on Robinhood, lifting the stock’s price target to $75 from the previous $57, citing the company’s robust business momentum and operational leverage.
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