5 Robinhood Analysts React To 'Blowout' Q4 Earnings: Can The 'Tremendous Momentum' Continue?

Core Viewpoint - Analysts have raised price targets for Robinhood shares following strong fourth-quarter results, highlighting impressive profitability metrics and accelerating growth [1][2]. Financial Performance - Robinhood reported Q4 revenue of $1.01 billion, exceeding estimates of $944.62 million, and earnings of $1.01 per share, surpassing estimates of 42 cents per share [1]. - Total revenue increased by 115% year-over-year, driven by strong transaction-based revenue growth across equities, options, and cryptocurrency [2]. - Net deposits reached a record of $16.1 billion in the quarter, with accounts growing by 10% [2]. Analyst Ratings and Price Targets - KeyBanc maintained an Overweight rating and raised the price target from $57 to $75, citing improving profitability and momentum with key product initiatives [2][3]. - JMP Securities maintained a Market Outperform rating and increased the price target from $60 to $77, describing the quarter as a "blowout" [4]. - Needham maintained a Buy rating and raised the price target from $52 to $70, noting strong growth and expense discipline [6]. - Goldman Sachs maintained a Buy rating and raised the price target from $54 to $62, calling it a "well-rounded quarter" [7][8]. - JPMorgan maintained a Neutral rating and raised the price target from $39 to $45, expressing caution regarding unproven business lines and valuation [9][10]. Growth Drivers and Market Position - Analysts believe Robinhood is well-positioned to continue its leadership in the financial application space, with expectations of growing average revenue per user due to strong engagement and new product uptake [3]. - The company is expected to benefit from positive regulation in the crypto space and aims to launch new crypto-related products appealing to retail customers by 2025 [7]. - Analysts noted that Robinhood's platform is maturing and evidencing profitability, with several growth drivers on the product roadmap not yet reflected in market estimates [6][9]. Stock Performance - Robinhood shares have increased by 67% year-to-date and over 360% in the past year, reflecting significant progress despite some analysts remaining cautious about new products and competition [10][11].