Robinhood Markets' stock (NASDAQ: HOOD) is facing headwinds in pre-market trading today, with shares down roughly 4% after closing out Friday's session impressively. Today's pullback comes after a year of impressive gains, with HOOD rising 89.86% since the start of 2025.
This morning's move down comes as HOOD failed to gain inclusion in the S&P 500, in similar vein to Applovin, which had also run up in anticipation of being added to the index in the latest round of rebalancing.
The recent upward trajectory of Robinhood's stock this year has been fueled by a combination of factors, including increased retail investor activity and strategic expansions into new markets and asset classes. The company's move to acquire Canadian crypto firm WonderFi for C$250 million ($178.98 million) in May signaled a commitment to expanding its footprint in the cryptocurrency space and broadening its international presence.
Simultaneously, the rollout of the “Robinhood Legend” desktop trading platform in the UK aimed to attract experienced retail investors, diversifying its user base beyond the younger, novice traders that initially flocked to the platform.
The mixed signals surrounding Robinhood are reflected in a couple of analyst price target changes this morning. Whilst Deutsche Bank came in bullish, with an upgraded $85 price target (from $70, accompanied by a Buy rating; Redburn Atlantic downgraded HOOD to sell (from Neutral). The latter also cut their price target from $48 to $40, with the firm seeing execution risks in integrating acquisitions, alongside a more global rollout.
This disparity underscores the uncertainty surrounding the company's future performance and the divergent opinions among market experts. t.
| Price Target Changes | |
|---|---|
| 06/09 | Redburn Atlantic lowered Robinhood shares from “Neutral” to “Sell” and decreased the price target from $40 to $48. |
| 06/05 | Goldman Sachs increased the firm's price target on Robinhood from $72 to $81 and maintains a “Buy” rating on the shares. |
| 06/04 | BofA analyst Craig Siegenthaler regards Robinhood (HOOD) as “a prime candidate” for the S&P 500 when the index next rebalances. |
| 06/09 | Deutsche Bank increased the firm's price target on Robinhood from $75 to $80, and maintains a “Buy” rating on the shares. |
| 05/13 | Morgan Stanley has upped the firm's price target on Robinhood from $40 to $43 from $40 and kept an “Equal Weight” rating on the shares. |
| 05/13 | BofA have raised the firm's price target on Robinhood from $60 to $65 keeps a “Buy” rating on the shares. |
Robinhood's stock is currently navigating a complex landscape of positive growth drivers and potential headwinds. Whilst the S&P 500 may remain elusive for the time being, it seems like the inclusion is only moving closer if the company can continue on it's current path. Today's analyst disparity however, tells a tale of mixed sentiment, even amid recent stock gains.
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