Robinhood (HOOD) Leads Gen Z Trading Boom, Piper Sandler Reaffirms Overweight

Robinhood Markets Inc. (NASDAQ:HOOD) ranks among the 10 best new stocks to buy in Ray Dalio’s portfolio. On January 5, Piper Sandler reaffirmed its Overweight rating on Robinhood Markets Inc. (NASDAQ:HOOD) with a $155 price target, citing the company as its top pick to leverage on developing consumer trading trends. The firm emphasized Robinhood’s “unrivaled brand recognition” among Gen Z and Millennial dealers in the US, which is setting the company to profit from shifting investor patterns.

The firm highlighted Robinhood’s prediction market service, which debuted in 2025 and became the company’s most rapidly growing offering ever. Piper Sandler estimates that this prediction market offering already generates more than $300 million in annual revenue.

Meanwhile, Goldman Sachs reduced its price target for Robinhood Markets Inc. (NASDAQ:HOOD) to $161 from $164 on January 5, citing projections that Robinhood Markets Inc. (NASDAQ:HOOD) will achieve “best-in-class” expansion in its top and bottom lines, as well as platform assets, thanks to ongoing product innovation that grows its total addressable market.

Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US. Its platform allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies.

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.