TLDR
- Robinhood Markets stock surged 12% to a record high of $136.72 on Monday, leading the S&P 500
- The company surpassed 4 billion event contracts traded in prediction markets, with 2 billion in Q3 alone
- Q2 revenue reached $989 million, beating estimates by $69 million and marking a 45% year-over-year increase
- Crypto trading revenue jumped 98% to $160 million compared to the same period last year
- Analysts raised price targets with Mizuho projecting $145 and Piper Sandler increasing to $140
Robinhood Markets closed at an all-time high of $136.72 on Monday. The stock jumped 12.27% in a single session.
The rally made HOOD the top performer in the S&P 500 for the day. Year-to-date, the stock has gained over 260%.
CEO Vlad Tenev announced on social media that the platform has surpassed 4 billion event contracts traded. That includes 2 billion contracts traded in Q3 alone.
Event contracts let users bet on outcomes of elections, sports games, and other events. The prediction markets business has become a key growth driver.
Piper Sandler analyst Patrick Moley raised his price target from $120 to $140. He maintained his Buy rating on the stock.
Moley pointed out that event contract volumes at Kalshi are on pace for a record September. Kalshi partners with Robinhood to offer prediction markets.
The launch of NFL and NCAA football markets has driven much of this growth. Moley estimates Robinhood users account for 25% to 35% of daily Kalshi trading volumes.
Strong Q2 Results Beat Expectations
The company reported Q2 revenue of $989 million. That beat Wall Street estimates of $920 million.
Revenue grew 45% compared to the same quarter last year. Earnings per share came in at $0.42, crushing the consensus estimate of $0.31 by more than 35%.
Net income climbed 105% year-over-year. Adjusted EBITDA reached $549 million for the quarter.
The crypto division posted particularly strong numbers. Crypto trading revenue jumped 98% to $160 million compared to a year earlier.
Robinhood added 2.3 million new funded accounts during Q2. The user growth spans both traditional brokerage and crypto offerings.
Analyst Upgrades Follow S&P 500 Inclusion
Robinhood joined the S&P 500 on September 22. The inclusion brought increased visibility to institutional investors.
Multiple analysts responded by raising their price targets. BofA Securities bumped its target to $139.
Mizuho went even higher, projecting a price of $145. These upgrades reinforced the bullish sentiment already building around the stock.
Moley estimates that revenues from event contracts are on track to annualize at over $200 million in September alone. That’s a meaningful contribution to the company’s overall revenue mix.
The stock has gained more than 450% from its April lows near $30. It has consistently found support above key moving averages on daily charts.
Wall Street maintains a Moderate Buy rating on HOOD based on 12 Buy ratings and six Hold ratings. The consensus price target sits at $127.06, which is actually below current trading levels.
The platform now processes billions of event contracts each quarter while expanding its crypto and traditional brokerage businesses. Robinhood added millions of new accounts in Q2 while growing revenue 45% year-over-year and doubling net income.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
