Robinhood stock gains following Bernstein’s reiterated Outperform rating

Published 09/09/2025, 14:54
Robinhood stock gains following Bernstein’s reiterated Outperform rating

Investing.com - Robinhood Markets (NASDAQ:HOOD), currently trading at $115.66 and up 16.3% in the past week, received a vote of confidence from Bernstein SocGen Group, which reiterated its Outperform rating and $160.00 price target on the financial services platform. According to InvestingPro, the stock has delivered an impressive 496.54% return over the past year.

The reaffirmation comes after Robinhood was added to the S&P 500 index last Friday, marking a significant milestone for the company that began as a retail trading platform but has evolved into what Bernstein describes as "a financial services market leader for the new generation."

Bernstein’s analysis highlights Robinhood’s substantial growth potential, noting it currently represents only 2.7% of the total broking and advisory revenue pool, suggesting significant room for market share expansion in wealth management and broader financial services. The company’s revenue has grown 59.38% year-over-year, with a remarkable gross profit margin of 91.51%.

The firm points to Robinhood Gold as a key growth driver, with 3.5 million members paying $5 monthly for premium features including superior deposit rates, mortgage offers, and the Gold credit card, which already has 300,000 cards issued and a "long waiting queue."

Bernstein praised Robinhood’s management for "top-notch" execution with "best-in-class product velocity and monetization," reinforcing the view that the company is building "the most evolved multi-asset financial superapp" by leveraging technology to deliver financial services at accessible price points.

In other recent news, Robinhood Markets announced a significant growth in its total platform assets, reaching $298 billion at the end of July 2025. This marks a 7% increase from June and a remarkable 106% growth compared to the previous year. The company also reported 26.7 million funded customers, with 160,000 new customers added in July and 2.5 million over the past year. Meanwhile, Cantor Fitzgerald raised its price target for Robinhood to $128, citing strong performance in July with equity volumes and option contracts surpassing expectations. Compass Point reiterated a Buy rating for Robinhood, highlighting the effectiveness of its promotional strategy and customer acquisition efforts. Additionally, Robinhood has introduced football prediction markets on its platform, allowing users to trade on outcomes of professional and college football games. This new feature is integrated into the Prediction Markets Hub, covering all regular season pro matchups and college Power 4 schools. In a separate development, House of Doge partnered with Bitstamp by Robinhood for treasury custody, aiming to provide stability and transparency for the Dogecoin ecosystem.

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