13 Feb Robinhood is jumping after earnings. Here’s what analysts had to say
Robinhood shares surged on Thursday after the financial services platform’s latest quarterly results soared past earnings estimates, prompting analysts to grow more bullish on the stock. Shares gained more than 10% on Thursday. Robinhood said it earned $916 million, or $1.01 per share, on revenue of $1.01 billion in the fourth quarter. That is way above the 42 cents per share in earnings and $945.8 million in revenue that analysts polled by FactSet were anticipating during the period. HOOD 1D mountain HOOD, 1-day In an earnings call with analysts, CEO Vlad Tenev noted that this was the first time Robinhood’s quarterly revenue topped $1 billion in its history. “That capped off what was a record-breaking year with over $3 billion in revenue for the whole year,” he continued. Robinhood expects 2025 to be another year of “double-digit” revenue growth, Chief Financial Officer Jason Warnick said on the call. The company did not provide a specific earnings forecast for the year, but said its combined adjusted operating expenses and share-based compensation is expected to be between $2 billion and $2.1 billion. Many analysts were upbeat on the company following those results, maintaining their buy or outperform-equivalent ratings and raising their price targets for the stock. Below is what those analysts had to say. Morgan Stanley raises price target to $90 from $64 The firm’s new target implies about 61% upside from Wednesday’s close. It also reiterated its overweight and top pick ratings. “We have increased conviction in HOOD’s growth path ahead on the back of 4Q’s significant earnings beat and conference call that provided greater clarity around the 2025 product roadmap and strategic initiatives. Mgmt’s commentary surrounding January volumes and activity is encouraging in the backdrop of conservative 1q25 consensus and MSe transactional revenues and KPIs. As we wrote about in our upgrade note last year and our earlier elevation to top pick, we see a sustainable business model in HOOD that’s expanding into different business lines with many vectors for growth that remain early in its journey and not yet reflected in valuation and the shareholder base. We also see an attractive opportunity for HOOD to participate more aggressively in crypto given scope for deregulation.” Barclays ups its price target to $76 from $54 The bank’s updated forecast reflects about 36% upside potential. It kept its rating at overweight. “Q4 results were well ahead of Street estimates (revenues / adj. EBITDA coming in 8% and 12% with Bloomberg consensus, though a hair below our model), and the momentum appears to have continued into January, with strong transacting activity, margin loan growth, and net deposits. The company is also showing continued momentum with new products (Index options, Futures, Gold credit card, etc.), with much more to come. While there is no doubt the macro backdrop remains constructive for retail trading, Robinhood is clearly continuing to execute well and continues to have a long runway of opportunities ahead.” Bernstein doubles its price target to $105 from $51 Bernstein’s outlook calls for nearly 88% upside ahead. The firm also maintained its outperform rating. “HOOD crushed Q4 earnings with its first $1Bn revenue quarter, led by 487% seq. QoQ growth in crypto revenues (733% YoY). Q4 was the election quarter and the big crypto inflection was expected. The market consensus here (which has scrambled post election to ramp up estimates) is still missing the business model shifts and the exponential revenue pool expansion. HOOD is building a global financial ecosystem across asset-classes – equities, crypto, tokenized securities, stablecoins, prediction markets. And leveraging blockchain rails to drive operating efficiency.” Deutsche Bank raises price target to $73 from $54 The bank’s updated target reflects more than 30% upside from here, and it reiterated its buy rating. “With the strong 4Q results, and favorable mgmt’s commentary on the call regarding growth traction across a variety of new products and outlook for double-digit revenue growth this year (on top of good expense discipline), we are becoming increasingly comfortable on the solid EPS growth outlook, at close to a ~30% annual pace across our forecast horizon. This is driven by continued solid growth in crypto transaction revenue, a ramp up in index options and futures, and several other areas that we conservatively model – such as event contracts expected to be launched later this year.” Goldman Sachs increases price target to $62 from $54 Goldman Sachs’ new forecast implies about 11% upside potential. It also has a buy rating on the stock. “We believe management’s plan of continuing to roll out new products/features across platforms, geographic expansion, and adding additional crypto products should support further account and volume growth, and share gains.”