Robinhood Markets Stock Outlook: Is Wall Street Bullish or Bearish?

Core Insights - Robinhood Markets, Inc. has a market capitalization of $94.6 billion and provides a digital platform for investing in various assets, including stocks, ETFs, options, and cryptocurrencies, along with features like fractional trading and retirement accounts [1] Performance Overview - Over the past 52 weeks, Robinhood's stock has increased by 109.3%, significantly outperforming the S&P 500 Index, which returned 15%. However, year-to-date, the stock is down 8.6%, while the S&P 500 has gained 1.9% [2] - The stock has also outperformed the State Street Financial Select Sector SPDR ETF, which rose by 3.3% in the same period [3] Financial Results - Following the Q3 2025 results announced on November 5, 2025, Robinhood's shares fell by 10.8% as the company raised its full-year 2025 guidance for combined adjusted operating expenses and stock-based compensation to approximately $2.28 billion. Operating expenses reached $639 million, exceeding expectations due to marketing and growth initiatives [4] - Despite the stock decline, Robinhood reported strong financial results with revenue of $1.27 billion (up 100%), earnings per share (EPS) of $0.61 (up 259%), and net deposits of $20.4 billion. Analysts project an 85.3% year-over-year growth in EPS to $2.02 for the fiscal year ending December 2025 [5] Analyst Ratings - Among 22 analysts covering Robinhood, the consensus rating is a "Moderate Buy," consisting of 14 "Strong Buy" ratings, two "Moderate Buys," five "Holds," and one "Strong Sell" [6] - The current analyst configuration is slightly more bullish than three months ago, with 13 "Strong Buy" ratings. Needham analyst John Todaro reaffirmed a "Buy" rating with a price target of $135 [7]