Robinhood Stock (HOOD) Upgraded Ahead of Earnings – Price Target Held

Robinhood Markets stock (NASDAQ:HOOD) is on the rise in Monday's pre-market session, climbing 2.27% to build on Friday's impressive 13.95% rebound, after Wolfe Research upgraded the fintech platform to Outperform from Peer Perform with a $125 price target.

The move comes as the stock attempts to recover from a steep year-to-date decline of 28%, with the analyst firm viewing the recent pullback as creating a more attractive risk-reward profile for the trading platform ahead of this week's earnings.

The stock closed Friday at $82.82, representing a 13.97% single-day gain that marked one of its strongest sessions in recent months. Despite the recent bounce, Robinhood remains significantly below its earlier 2026 highs, presenting what Wolfe Research believes is an opportune entry point for investors willing to look past near-term volatility.

Wolfe Research's upgrade centers on the durability of Robinhood's earnings improvement trajectory. The firm highlighted prediction markets as a key growth driver capable of offsetting headwinds in other business segments, particularly cryptocurrency trading, which has faced reduced volumes amid broader digital asset market uncertainty. This assessment suggests the analyst believes Robinhood's revenue diversification efforts are beginning to bear fruit, reducing the company's reliance on volatile crypto-driven transaction fees.

The upgrade adds to a growing chorus of bullish sentiment from Wall Street analysts. Bernstein SocGen Group maintains an Outperform rating with a $160 price target, citing emerging growth vectors in both prediction markets and cryptocurrency exchange operations.

Barclays has set an even more aggressive $168 target while maintaining an Overweight rating, reflecting confidence in the company's strategic positioning. Meanwhile, Keefe, Bruyette & Woods recently raised its price target to $135 from $121, though maintaining a Market Perform rating that suggests a more cautious stance on near-term upside.

Price Targets

Robinhood's recent financial performance has provided substantial support for these optimistic outlooks. The company's third-quarter 2025 earnings delivered $0.61 per share, comfortably exceeding the $0.51 consensus estimate. Revenue reached $1.27 billion, surpassing expectations of $1.19 billion and demonstrating the platform's ability to grow its top line even amid challenging market conditions. The second quarter showed similarly strong results, with earnings per share of $0.42 crushing analyst estimates and revenue of $989 million marking a 45% year-over-year increase.

The stock's recent volatility reflects broader concerns about the sustainability of retail trading volumes and cryptocurrency activity, both core revenue drivers for Robinhood's business model. Markets have grappled with uncertainty around regulatory developments affecting digital assets and questions about whether retail trading engagement can maintain elevated levels seen during the pandemic era.

Prediction markets represent a relatively new frontier for Robinhood, offering exposure to event-based trading that could provide more stable revenue streams compared to traditional equity or crypto trading. The segment's growth potential appears to be a key factor in analyst upgrades, suggesting the company is successfully expanding beyond its core brokerage operations.

With the stock trading well below analyst price targets, markets appear to be weighing near-term execution risks against longer-term growth potential. The recent upgrade and strong earnings momentum suggest that sentiment may be shifting, particularly if Robinhood can demonstrate continued diversification away from crypto-dependent revenues while maintaining the user engagement that has defined its platform since launch.