Robinhood Markets (NASDAQ:HOOD) shares are trading lower on Wednesday after the company reported fourth-quarter financial results after market close on Tuesday.
Analysts see the company's product expansion as a positive, but guidance and spending remain concerns.
• Robinhood Markets stock is taking a hit today. What’s behind HOOD decline?
The Robinhood Analysts
Cantor Fitzgerald analyst Ramsey El-Assal maintained an Overweight rating on Robinhood with a price target of $310.
Needham analyst John Todaro reiterated a Buy rating, while lowering the price target from $135 to $100.
Cantor Fitzgerald on HOOD Stock
Robinhood reported mixed results with revenue missing analyst estimates. El-Assal said this is due to "market volatility and natural cyclicality" and not due to weakness in the core business.
"While market volatility is likely to persist in the near term, we believe HOOD retains several levers (e.g., prediction markets, tokenization, international markets, retirement) that position the company to continue driving growth in less favorable market conditions," El-Assal said.
On prediction markets, the analyst says the offering is helping Robinhood's transaction-based revenues and could help the company achieve its goal of becoming the top platform for active traders, customer wallet share and the global financial ecosystem.
The analyst said Robinhood's preliminary January metrics show "signs of stabilization" across several areas, including crypto trading volumes.
"We view the January uptick in crypto trading volumes as particularly important as HOOD has been disproportionately punished for a weaker crypto trading outlook."
El-Assal said Robinhood shares may be getting hurt despite the segment making up around 17% of total revenue in the fourth quarter.
"We continue to view current price levels as compelling for longer-term investors."
Needham on HOOD Stock
Robinhood reported a strong fourth quarter, but the outlook was weak, Todaro said in a new investor note.
"Prediction markets were a particular standout and January volumes have started off strong, coming in at an ATH for the company (3.5 billion contracts)," Todaro said.
Strength in prediction markets could help the company offset the weakness it has in cryptocurrency volumes. Todaro predicts weakness for crypto volumes for the next two quarters before things rebound for the company.
Todaro highlights upcoming sports events such as March Madness, the FIFA World Cup and 2026 elections that could further boost prediction markets volume.
The analyst lowered 2026 estimates and the price target on HOOD stock as a result of the lower expected crypto trading volumes and potential weakness in options and equity trading as well.
"We believe with a more advanced equity and options and robust margin product offering, HOOD becomes closer to a one-stop shop for all things financial services."
HOOD Stock Price Action
Robinhood stock is down 12.21% to $75.15 on Wednesday versus a 52-week trading range of $29.66 to $153.86. Robinhood shares are down 35.1% year-to-date in 2026, but remain up around 40% over the last 52 weeks.
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