Robinhood Markets Grows Into 'Best-In-Class' Brokerage, Analyst Says

Erica Kollmann

December 06, 2024

Analysts have updated coverage and raised price targets on Robinhood Markets, Inc. (NASDAQ:HOOD) after the company hosted its first investor day on Wednesday and showed significant growth across customers, assets under custody and trading volumes.

Expert Ideas: Goldman Sachs analyst James Yaro assumed coverage of Robinhood Markets on Thursday and upgraded the stock from Neutral to Buy with a $46 price target. The analyst highlighted the firm's growth as driven by continued wallet share gains among active traders and sees a long-term opportunity for Robinhood to expand into other areas, including wealth management and international markets.

Read Next: Friday’s Top 5 Trending Stocks: What’s Going On With SoundHound AI, GameStop, Lululemon?

"HOOD has successfully migrated from a fast growing, periodically profitable online broker servicing mostly younger investors, to a best-in-class top and bottom-line asset under custody compounder with a growing total addressable market," Yaro wrote.

Robinhood's average revenue per user (ARPU) has more than doubled over the past two years and Yaro sees the firm's ARPU rising another 19% through 2026, driven mainly from transaction revenue growth.

The Goldman Sachs analyst also sees further growth of assets under custody (AUC), driven by Robinhood's low brokerage market share at present and its expanding wallet share among active traders. Yaro highlighted the "best-in-class customer value" provided through the company's HOOD Gold offering, as well as new products for active traders including index options, futures, crypto offerings and prediction markets.

Piper Sandler analyst Patrick Moley also weighed in on the potential for Robinhood to grow its assets under custody. In a Thursday note, Moley pointed to Robinhood's younger demographic, with 75% of its customers under age 43 combined with an ongoing generational wealth transfer of approximately $85 trillion, providing fuel for significant AUC and revenue growth.

Piper Sandler maintained its Overweight rating on Robinhood shares and raised its price target from $42 to $54.

HOOD Price Action: According to data from Benzinga Pro, Robinhood Markets shares ended Friday's session 7.07% higher at $41.67.

Read Next:

UnitedHealthcare CEO Brian Thompson Fatally Shot Outside NYC Hotel

Image: Shutterstock

Recommended

This Backdoor Energy Play Beat Gold by 15X - Ad

Nvidia CEO: E.I. Will Be as Common as Cars Today - Ad

Gold Is Being Reintroduced Into the Monetary System - Ad

Trump vows to make Syria successful after meeting with former al Qaeda commander, amid extended sanctions relief and GOP criticism.

China's 'Singles' Day' shopping festival a gauge of Beijing's effort to get consumers to spend more

HONG KONG (AP) — Alice Zhang, a 29-year-old marketer in the southern Chinese city of Guangzhou, has spent only roughly half what she did last year during the festival, switching to cheaper choices and giving up on buying new shoes after pay was cut by more than 20%.

Is This Elon's Worst Nightmare?

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

White House's 50-year mortgage proposal has one notable benefit but a number of drawbacks

NEW YORK (AP) — The White House says it is considering backing a 50-year mortgage to help alleviate the home affordability crisis in the country. But the announcement drew immediate criticism from policymakers, social media and economists, who said a 50-year mortgage would do little to resolve other core problems in the housing market, such as a lack of supply and high interest rates.

Trump commutes prison sentence for former private equity executive David Gentile

HALLANDALE BEACH, Fla. (AP) — President has commuted the prison sentence of former investment manager David Gentile, who was convicted of defrauding investors — the latest in a Trump has taken in .

The Market Just Crossed a Dangerous Line

The Market Just Crossed a Dangerous Line - Ad

The man who predicted the 2008 crash and 2020 says today's soaring markets are NOT a bubble - they're something far stranger and more dangerous. He says it's about to change everything you know about money.

16 Stocks To Buy If You Want To Escape The AI Hype

Bank of America is pointing investors toward 16 overlooked stocks with strong fundamentals and no direct ties to the AI boom—offering a safer path beyond the hype.

Marjorie Taylor Greene Buys Blue Chip Stock Near 52-Week Low

Marjorie Taylor Greene is known for buying multiple stocks at a time, based on recent disclosures. A new filing shows one stock bought in November.

Trump Triggered 70% Gains Overnight -- This Rare Earths Stock Could Be Next

Trump Triggered 70% Gains Overnight -- This Rare Earths Stock Could Be Next - Ad

Trump's turning tiny mining stocks into overnight fortunes... and this little-known rare earths miner could be his next billion-dollar BUY. If Trump cuts a deal you could see a 50% to 200% pop overnight. But you must act before the next deal hits the wire.

Elon Musk Says SpaceX Will Carry '99% Of All Earth Payload' Once Starship Flies Daily

Elon Musk says SpaceX will handle nearly all of Earth's orbital payloads in the coming years as Starship development continues.

How Tyson's Chicken Business Will Offset Beef Weakness

Tyson shares rise as pricing catch-up expected to ease cost pressures; chicken strength offsets beef headwinds amid stable feed costs.

Weiss Gold Veteran Makes Shocking New Call

Weiss Gold Veteran Makes Shocking New Call - Ad

Weiss expert Sean Brodrick went out on a limb last year and declared a historic event would send the yellow metal to $3,150. People laughed at him at the time, but he was off by just two days. Now, Sean has a shocking new prediction for gold ... and reveals a little-known way to get ahead of this bull market.

Air travelers face frustration as FAA's further drop in flights takes effect

Air travelers could face as busy U.S. airports need to meet a higher Federal Aviation Administration target for reducing flights Tuesday after already canceling thousands to scale back demands on the nation’s aviation system during the .

Movie Review: Time has outrun this 'Running Man'

It’s always interesting when time overtakes the dystopias of the past. In 1982 novel “The Running Man,” the United States has fallen into a totalitarian state, divided between haves and have-nots, where all movements can be surveilled and realistic video propaganda is easily generated. King’s book was set in the year 2025.

Bitcoin's Pullback Could Be Your Gain

Bitcoin's Pullback Could Be Your Gain - Ad

More than 70 cryptos have recently outperformed Bitcoin and it's not the first time. During crypto's last bull market the top 100 coins NOT named Bitcoin went up by 174%. Now the signs show that it's happening again. This could be a chance to strike gold in some far corners of the crypto market.

Piper Sandler Set For Best-In-Class Growth As Banking Cycles Turn: Analyst

Piper Sandler (PIPR) upgraded to Buy by Goldman Sachs with a target price of $386, projecting an 18% upside.

Yemen's Houthi rebels signal that they've stopped attacks on Israel and Red Sea shipping

DUBAI, United Arab Emirates (AP) — Yemen’s Houthi rebels are signaling they’ve stopped their as a holds in the Gaza Strip.

Trump Signs Law to Launch Dollar 2.0

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

What's Going On With Papa John's (PZZA) Stock Today? (UPDATED)

Shares of Papa John's International, Inc. (NASDAQ: PZZA) moved higher on Monday. Here's what you need to know.

These 8 Democrats voted with Republicans on the government shutdown deal. Here's how they explain it

WASHINGTON (AP) — The Democratic senators — eight in total — faced almost instant blowback from members of their own party as to allow the Senate to move forward on that would reopen the government.

Legally "Skim" $6,361 Into Your Account?

Legally "Skim" $6,361 Into Your Account? - Ad

A former hedge fund manager is now sharing his "Skim Codes" with regular people. They're not stocks. They're not crypto. They're 18-character codes designed to profit from recent market conditions. All you have to do is punch them into an ordinary brokerage account. 84% of these codes have given people the chance to generate cash payouts so far... and his next code is going out any day now.

Barrick's Breakup Rumors, North America Versus The World

Barrick Mining (NYSE: B) may split into two companies, one focused on North America and another on Africa and Asia.

Trump-Pardoned Ponzi Schemer Faces 37-Year Sentence For $44 Million COVID Scam

A previously convicted Ponzi schemer who had received a pardon from President Trump is heading back to prison due to involvement in a new fraudulent scheme.

This Backdoor Energy Play Beat Gold by 15X

This Backdoor Energy Play Beat Gold by 15X - Ad

Gold has hit all-time highs, but one little-known energy play has seen 15x the return since the start of this year. It's all thanks to the incredible energy demands AI is putting on our country. It's a bull market hiding in plain sight, and 40-year Wall Street veteran Larry Benedict has found one company at the heart of it all.

Watchdog group Public Citizen demands OpenAI withdraw AI video app Sora over deepfake dangers

The tech industry is moving fast and breaking things again — and this time it is humanity’s shared reality and control of our likeness before and after death — thanks to artificial intelligence image-generation platforms .

Buffett's Big Bet Banks Billions: Here's How Much Berkshire Hathaway Is Up On Alphabet

Buffett and his investment team at Berkshire Hathaway unveiled an investment in Alphabet stock in the second quarter.

Nvidia CEO: E.I. Will Be as Common as Cars Today

Nvidia CEO: E.I. Will Be as Common as Cars Today - Ad

E.I. isn't science fiction anymore. It's already here. And one little-known company is quietly supplying the systems behind it. This stock is still under Wall Street's radar... but not for long. You'll get the name, the ticker, and the full thesis inside.

JPMorgan Forecasts Bitcoin Bottom, Anticipates $28.3 Trillion Challenge To Gold By 2026

Analysts at JPMorgan have pinpointed the lowest point of the ongoing Bitcoin (CRYPTO: BTC) price fall and also projected a substantial chall

What to know about the apartment tower fire in Hong Kong

HONG KONG (AP) — Hong Kong firefighters were making a final push to try and find any survivors from the city's , going apartment-to-apartment in the high-rise complex in an exhaustive search.

Gold Is Being Reintroduced Into the Monetary System

Gold Is Being Reintroduced Into the Monetary System - Ad

While the media focuses on political scandals, inflation and coming up with ridiculous acronyms "TACO"... Smart money is tracking a far bigger shift: a gold revaluation is quietly underway. Garrett Goggin, CFA, says this could trigger 100X moves in select miners - and he's identified four with the biggest upside.

Full blackout hits the Dominican Republic as crews scramble to restore power

SANTO DOMINGO, Dominican Republic (AP) — A rare blackout hit the entire on Tuesday, snarling traffic and paralyzing businesses in the country of nearly 11 million people.

AT&T reached a $177M data breach settlement. What consumers should know about claiming their money

NEW YORK (AP) — AT&T has reached a combined $177 million settlement over two . And impacted consumers have a little over a month left to file a claim for their chunk of the money.

Is This Elon's Worst Nightmare?

Is This Elon's Worst Nightmare? - Ad

TSMC Ex-VP's Home Raided As Chip Giant Alleges Intel Recruit Leaked Trade Secrets

Taiwan prosecutors raided the homes of a former TSMC vice president accused of leaking advanced chipmaking secrets to Intel, a claim Intel firmly denies as the high-stakes investigation intensifies.

Weekend Round-Up: TSMC Trade Secrets Lawsuit, Google Deepmind Scientist's Market Slam, Baidu Layoffs, Amazon's Court Victory And More

From allegations of trade secret leaks at Taiwan's TSMC to layoffs at Baidu Inc, here's a recap of tech news this week.

The Market Just Crossed a Dangerous Line

The Market Just Crossed a Dangerous Line - Ad

Paul Krugman Warns AI Rallies Driven By Rate-Cut Hopes Are 'Dead Cat Bounces' — Says It 'Bears an Unmistakable Resemblance' To The Dot-Com Era

Economist Paul Krugman is drawing sharp parallels between the current state of the AI trade and the final years of the dot-com boom in the 1990s, while warning that investors might be misreading the Federal Reserve's recent signals and actions.

S&P Calls Tether 'Weak' — Meanwhile It's Buying More Gold Than Central Banks

Tether (CRYPTO: USDT) just got slapped with the lowest possible stability score from S&P G

Trump Triggered 70% Gains Overnight -- This Rare Earths Stock Could Be Next

Trump Triggered 70% Gains Overnight -- This Rare Earths Stock Could Be Next - Ad

Dan Ives Calls Nvidia The 'Indisputable Rocky Balboa' Of AI And Gene Munster Agrees As The Jensen Huang-Led Tech Giant Faces Rare November Slump

Despite a rare November stock pullback and rising competition from Google and Broadcom, analysts including Dan Ives and Gene Munster continue to hail Nvidia as the leading force in the AI chip market.

Trending Now