Popular financial services company Robinhood Markets (HOOD) has rewarded investors this year with robust gains. Its pending addition to the S&P 500 Index ($SPX) on Sept. 22 has also raised investor optimism. Following the news of the addition, HOOD stock surged 15.8% intraday on Sept. 8. 

Citing this inclusion in the index, Bernstein analyst Gautam Chhugani hiked HOOD stock to a Street-high price target of $160. Chhugani believes that this inclusion is more than symbolic, bolstering the belief that the stock can be much more than a speculative trading platform. 

About Robinhood Stock

Headquartered in Menlo Park, California, Robinhood is an innovative fintech company that offers a commission-free trading platform for stocks, exchange-traded funds (ETFs), cryptocurrencies, and options. The company’s mobile-first app provides everyday investors with access to broad financial markets, featuring support for key benefits such as fractional share trading, instant withdrawals, and premium products. 

Targeting newer and younger investors, Robinhood’s mission is to make financial markets more accessible to everyone. Beyond trading, the company earns income from margin accounts, its premium Robinhood Gold service, and payment for order flow. 

With a user-friendly interface and low entry requirements, Robinhood has gained a large user base and played a key role in reshaping the traditional investment brokerage model. The company has a market capitalization of $102 billion. 

Robinhood is having a stellar year so far. Investors’ interest in cryptocurrencies, mega-cap equities, and meme stocks has led HOOD stock to skyrocket recently. Over the past 52 weeks, Robinhood stock has gained 428%, while it is up 215% year-to-date (YTD). After it was revealed that Robinhood would be included in the S&P 500, HOOD reached a 52-week high of $123.44 on Sept. 10, but it is now down 5% from this high. 

Robinhood trades at a stretched valuation at the moment. Its price sits at 72 times earnings, which is considerably higher than the industry average. 

Robinhood Q2 Results Were Better Than Expected

On July 30, Robinhood reported robust second-quarter results for fiscal 2025. The company’s total net revenues increased by 45% year-over-year (YOY) to $989 million, surpassing the $920.4 million that Wall Street analysts had expected. The company’s topline growth was predicated upon its solid transaction revenues. 

Robinhood’s transaction-based revenues increased by 65% from the prior year’s period to $539 million. This was driven primarily by options revenue rising 46% annually, revenue from cryptocurrencies increasing by 98%, and equities revenue increasing by 65% YOY.

On an operational basis, Robinhood’s functions are growing soundly. Its funded customers in Q2 increased by 10% YOY to 26.5 million, while its Gold customers jumped 76% annually to 3.5 million. The company had $279 billion in total platform assets, which underscores growth through net deposits, higher equity and crypto valuations, as well as the acquisition of certain assets. Notably, following Robinhood's acquisition of the exchange in June, Bitstamp Exchange's crypto notional trading volumes reached $7 billion. 

Robinhood’s bottom-line financials are also expanding at a robust pace. EPS for the second quarter doubled YOY to $0.42. This figure was also higher than the $0.31 EPS that Wall Street analysts were expecting. The company’s adjusted EBITDA was $549 million, up 82% YOY, which surpassed the $448.8 million figure analysts were anticipating. 

Analysts are optimistic about Robinhood’s future earnings. They expect EPS to climb by 118% YOY to $0.37 for the current quarter. For the current fiscal year, EPS is projected to surge 42% annually to $1.55, followed by 22% growth to $1.89 in the next fiscal year. 

What Do Analysts Think About Robinhood Stock?

In addition to Bernstein’s bullish view, other Wall Street analysts see a lot of prospects for Robinhood now. This month, Piper Sandler maintained an “Overweight” rating for the stock, while keeping its $120 price target unchanged. This bullish stance was likely based on recent plans to launch several new trading features, which were revealed during the 2025 HOOD Summit in Las Vegas. Mizuho analyst Dan Dolev also maintained a “Buy” rating on Robinhood shares, while raising the price target from $120 to $145, citing confidence gained following the summit.

Robinhood remains a popular name on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating overall. Of the 22 analysts rating the stock, a majority of 13 analysts rate it a “Strong Buy,” two analysts suggest a “Moderate Buy,” six analysts have a “Hold” rating, and one analyst gives a “Strong Sell” rating. The consensus price target of $119.95 represents marginal upside from current levels. However, Bernstein's Street-high price target of $160 indicates 36% potential upside.   

Key Takeaways

The conviction that Robinhood can be more than a speculative trading hub may become a reality if the company continues its current financial growth and operational expansion, and the inclusion in the S&P 500 consolidates this view. Therefore, it might be wise to consider HOOD stock as an investment.