TLDR
- Robinhood stock dropped 0.59% after hours to $99.37 following news it was passed over for S&P 500 inclusion in favor of Trade Desk, despite having double the market cap at $88 billion
- The stock has surged 160% year-to-date and 35% in the past month, driven by increased crypto trading volumes as Bitcoin hits record highs
- Citizens JMP raised its price target to $125, citing positive trends in capital markets, IPO revival, and growing M&A activity
- Upcoming earnings on July 30, 2025 project EPS of $0.29 (up 38.1% year-over-year) and revenue of $891.64 million (up 30.7%)
- Florida Attorney General launched investigation into Robinhood Crypto’s marketing claims about pricing, though investor enthusiasm remains strong
Robinhood Markets stock faced a minor setback after hours Monday, falling 0.59% to $99.37. The drop came after news that the company was again overlooked for S&P 500 inclusion.
Trade Desk was selected instead for the index addition. This choice surprised some market watchers given Robinhood’s larger market capitalization.
At $88 billion, Robinhood’s market cap stands more than double that of Trade Desk. The $100 price level continues to act as a resistance point for the stock.
Traders point to both psychological and technical barriers at this level. The rejection marks another disappointment in Robinhood’s quest for index inclusion.
Despite the S&P 500 setback, Robinhood remains one of 2025’s top stock performers. The shares have rallied more than 160% year-to-date.
The past month alone has seen gains exceeding 35%. Much of this surge stems from the broader cryptocurrency rally.
Bitcoin recently hit record highs, boosting trading activity across Robinhood’s platform. The crypto surge has driven increased user engagement and transaction volumes.
Retail investor sentiment continues to run high on the stock. Market participants closely monitor legislative developments in Congress.
These potential regulatory changes could provide clarity and tailwinds for crypto-oriented businesses. Robinhood stands to benefit from any pro-crypto legislation.
Analyst Optimism Drives Price Target Increases
Citizens JMP recently raised its price target on Robinhood to $125. The firm cited multiple positive trends supporting the fintech sector.
These include improving capital markets conditions and a revival in the IPO market. Increased M&A activity also supports the bullish outlook.
The analysts highlighted the maturing digital asset sector as another positive factor. These trends create a favorable environment for Robinhood’s business model.
The current price target represents upside potential from current levels. Other analysts have expressed similar optimism about the stock’s prospects.
Earnings Preview Shows Strong Growth Expectations
Robinhood is scheduled to report its next quarterly earnings on July 30, 2025. Consensus estimates project strong growth across key metrics.
Analysts expect EPS of $0.29 for the quarter, representing 38.1% growth year-over-year. Revenue forecasts call for $891.64 million, up 30.7% from the prior year.
Full-year projections show continued momentum with EPS estimates of $1.26. Revenue expectations reach $3.64 billion for the full year.
The stock currently trades at a price-to-earnings ratio of 57.12. This valuation is considered high relative to traditional financial services peers.
Recent regulatory developments include an investigation by the Florida Attorney General. The probe focuses on Robinhood Crypto’s marketing claims about pricing.
This investigation has not dampened investor enthusiasm for the stock. Trading volumes remain elevated as crypto activity continues to drive growth.
The company’s crypto trading revenue has become an increasingly important part of its business model. Bitcoin’s recent record highs have contributed to this trend.
Legislative developments in Washington could provide additional catalysts for the stock. Pro-crypto policies would likely boost Robinhood’s trading volumes further.
Citizens JMP raised its price target to $125, citing positive capital markets trends and the maturing digital asset sector as key drivers for future growth.
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