TLDR
- Bernstein maintains Outperform rating on Robinhood (HOOD) with $160 price target, up 38% from current levels
- Stock added to S&P 500 index last Friday, driving recent gains of 16.3% in past week
- Company controls 12% of U.S. retail trading revenue and 30% of crypto market share
- Robinhood Gold has 3.5 million paying subscribers at $5 monthly with strong growth trajectory
- Platform assets reached $298 billion in July, up 106% year-over-year with 26.7 million funded customers
Robinhood Markets (HOOD) continues to attract analyst support following its inclusion in the S&P 500 index last Friday. Bernstein analyst Gautam Chhugani reiterated his Outperform rating with a $160 price target, representing 38% upside from current trading levels.
The stock has surged 16.3% in the past week alone. HOOD trades at $115.66 after hitting new all-time highs on Monday before pulling back nearly 2% on Tuesday.
Bernstein views Robinhood as evolving beyond its retail trading origins into a comprehensive financial services platform. The firm describes the company as “a financial services market leader for the new generation.”
The analyst points to substantial growth opportunities ahead. Robinhood currently captures only 2.7% of the total broking and advisory revenue pool. This leaves room for expansion in wealth management and broader financial services.
Market Share Growth
Recent data shows Robinhood’s growing dominance in retail trading. The platform now accounts for 12% of U.S. retail trading revenue across stocks and crypto. This marks an increase from just 7% two years ago.
The company has made particularly strong gains in cryptocurrency trading. Robinhood now controls roughly 30% of the U.S. crypto market following FTX’s collapse and Binance.US’s retreat from American operations.
Platform assets reached $298 billion at the end of July 2025. This represents a 7% monthly increase and 106% growth year-over-year. The company reported 26.7 million funded customers with 160,000 new additions in July alone.
Premium Services Drive Revenue
Robinhood Gold serves as a key growth driver with 3.5 million paying members. Subscribers pay $5 monthly for premium features including higher deposit rates and mortgage offers. The Gold credit card has already issued 300,000 cards with a lengthy waiting list.
Revenue has grown 59.38% year-over-year with gross profit margins reaching 91.51%. Bernstein praised management for “top-notch execution with best-in-class product velocity and monetization.”
The S&P 500 inclusion will likely boost institutional demand. Index funds and ETFs tracking the benchmark must purchase HOOD shares to maintain proper weightings.
Chhugani warned that regulatory risks remain. Payment for order flow and crypto trading regulations could impact future operations. These concerns continue to create uncertainty for the stock.
Multiple firms have raised price targets recently. Cantor Fitzgerald increased its target to $128 citing strong July performance. Compass Point maintained its Buy rating highlighting effective promotional strategies.
The company recently launched football prediction markets on its platform. Users can trade on outcomes of professional and college football games through the Prediction Markets Hub.
TipRanks consensus shows a Moderate Buy rating based on 12 Buy and 6 Hold recommendations. The average price target of $117.81 implies modest 2% upside from current levels.
Robinhood added 2.5 million new customers over the past year while expanding into new financial products. The platform continues developing what Bernstein calls “the most evolved multi-asset financial superapp.”
