As one of the most searched for companies on Zacks.com, Robinhood Markets HOOD stock has skyrocketed a remarkable +215% in 2025, hitting a new all-time high of $123 in Wednesday’s trading session.
The extensive rally in Robinhood stock has been attributed to a mix of strategic moves that have boosted its financial results and gained favor among Wall Street.
Since going public in 2021, HOOD is now sitting on gains of +237%, making it a worthy topic of whether it’s time to buy, hold, or take profits.
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Product Innovation & Strategic Expansion
Regarding strategic moves, Robinhood has rolled out several new features on its trading platform, including short-selling tools, overnight index options, and an AI-poweredstock screener(Cortex AI). Additionally, Robinhood has implemented a social media network (Robinhood Social) with communication updates that are attracting both casual and advanced traders.
Further deepening engagement has been Robinhood’s expansion into crypto and options trading. Driving transaction-based revenue, Robinhood saw its crypto revenue spike 97% during Q2 to $160 million from $81 million in the comparative quarter. Notably, Robinhood has acquired crypto businesses Bitstamp and WonderFi to expand its global crypto infrastructure.
Robinhood’s Explosive Financial Growth
Magnifying Robinhood’s growth, its top and bottom line figures soared 45% and 105% during Q2, respectively, posting quarterly net income of $386 million on sales of $989 million. Zacks' projections call for Robinhood to hit its second-ever billion-dollar quarter during Q3 (Current Qtr below), after hitting the mark for the first time during Q4 2024. Even better, Robinhood’s annual sales are now expected to increase 36% this year and are projected to rise another 19% in fiscal 2026 to $4.78 billion.
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S&P 500 Inclusion & Analyst Upgrades
Adding institutional credibility, Robinhood will be added to the S&P 500 this month, replacing Caesars Entertainment CZR. Boosting investor confidence, this has triggered buying from index funds and ETFs that track the benchmark.
Although HOOD has blown past its Average Zacks Price Target of $115, it's noteworthy that many analysts have recently upgraded Robinhood stock. These include analysts at Piper Sandlar PIPR, KeyBank KEY, Barclays BCS, and Goldman Sachs GS, with some of the more bullish forecasts among Wall Street calling for a price target of $145 a share.
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Positive EPS Revisions
Most influential to the Zacks Rank, earnings estimate revisions (EPS) have soared for Robinhood over the last 60 days for FY25 and FY26. Expecting high-double-digit EPS growth for the foreseeable future, FY25 revisions have popped 23% in the last two months from $1.26 to $1.55, with FY26 estimates rising 21% from $1.54 to $1.87.
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Bottom Line
Although it may certainly be a good time to take profits in Robinhood stock if needed, it wouldn’t be surprising if there is still higher highs ahead with HOOD sporting a Zacks Rank #1 (Strong Buy) at the moment.
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Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Barclays PLC (BCS) : Free Stock Analysis Report
KeyCorp (KEY) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
Piper Sandler Companies (PIPR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
