Wall Street Firms Tout Robinhood Markets, Inc. (HOOD) Prospects amid Prediction Market Opportunity

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best cryptocurrency and blockchain stocks to buy now. On January 5, analysts at Piper Sandler reiterated an Overweight rating on Robinhood Markets Inc (NASDAQ:HOOD) and maintained a $155 price target.

According to the research firm, Robinhood Markets is one of the top companies well poised to capitalize on emerging retail trading trends. That’s because it boasts unmatched brand recognition among US Gen Z and millennial traders. Additionally, it is positioned to benefit from changing investor demographics.

Piper Sandler is also confident in the current management team’s ability to identify emerging trends, understand customer needs, and execute rapid go-to-market strategies. The company’s prediction market, launched in 2025, has become the fastest-growing product, generating over $300 million in annualized revenue. The product has allowed the company to diversify its revenue streams.

Earlier on December 16, analysts at Mizuho also touted Robinhood stock as an Outperform with a $172 price target. The positive stance reflects the firm’s confidence in the company’s growth prospects in the prediction market segment. The firm expects the company to deliver a much larger percentage of revenue benefit from the prediction market than Coinbase.

Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services company that offers a mobile-first, commission-free platform for trading stocks, ETFs, options, and cryptocurrencies, aiming to democratize finance with accessible tools like fractional shares and crypto wallets, while also providing cash management, retirement accounts, and learning resources for retail investors.

While we acknowledge the potential of HOOD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.