Robinhood shares surged on Thursday after the monetary providers platform’s newest quarterly outcomes soared previous earnings estimates, prompting analysts to develop extra bullish on the inventory. Shares gained greater than 10% on Thursday. Robinhood stated it earned $916 million, or $1.01 per share, on income of $1.01 billion within the fourth quarter. That is method above the 42 cents per share in earnings and $945.8 million in income that analysts polled by FactSet had been anticipating within the interval. HOOD 1D mountain HOOD, 1-day In an earnings name with analysts, CEO Vlad Tenev famous that this was the primary time Robinhood’s quarterly income topped $1 billion in its historical past. “That capped off what was a record-breaking yr with over $3 billion in income for the entire yr,” he continued. Robinhood expects 2025 to be one other yr of “double-digit” income development, CFO Jason Warnick stated on the decision. The corporate did not present a selected earnings forecast for the yr, however stated its mixed adjusted working bills and share-based compensation is predicted to be between $2 billion and $2.1 billion. Many analysts had been upbeat on the corporate following these outcomes, sustaining their purchase or outperform-equivalent rankings and elevating their worth targets for the inventory. Under is what these analysts needed to say. Morgan Stanley raises worth goal to $90 from $64 The agency’s new goal implies about 61% upside from Wednesday’s shut. It additionally reiterated its chubby and high choose rankings. “We’ve got elevated conviction in HOOD’s development path forward on the again of 4Q’s important earnings beat and convention name that supplied higher readability across the 2025 product roadmap and strategic initiatives. Mgmt’s commentary surrounding January volumes and exercise is encouraging within the backdrop of conservative 1q25 consensus and MSe transactional revenues and KPIs. As we wrote about in our improve observe final yr and our earlier elevation to high choose, we see a sustainable enterprise mannequin in HOOD that is increasing into completely different enterprise traces with many vectors for development that stay early in its journey and never but mirrored in valuation and the shareholder base. We additionally see a gorgeous alternative for HOOD to take part extra aggressively in crypto given scope for deregulation.” Barclays ups its worth goal to $76 from $54 The financial institution’s up to date forecast displays about 36% upside potential. It stored its score at chubby. “This autumn outcomes had been nicely forward of Road estimates (revenues / adj. EBITDA coming in 8% and 12% with Bloomberg consensus, although a hair under our mannequin), and the momentum seems to have continued into January, with robust transacting exercise, margin mortgage development, and web deposits. The corporate can be exhibiting continued momentum with new merchandise (Index choices, Futures, Gold bank card, and so on.), with far more to return. Whereas there isn’t any doubt the macro backdrop stays constructive for retail buying and selling, Robinhood is clearly persevering with to execute nicely and continues to have a protracted runway of alternatives forward.” Bernstein doubles its worth goal to $105 from $51 Bernstein’s outlook requires almost 88% upside forward. The agency additionally maintained its outperform score. “HOOD crushed This autumn earnings with its first $1Bn income quarter, led by 487% seq. QoQ development in crypto revenues (733% YoY). This autumn was the election quarter and the large crypto inflection was anticipated. The market consensus right here (which has scrambled put up election to ramp up estimates) continues to be lacking the enterprise mannequin shifts and the exponential income pool enlargement. HOOD is constructing a worldwide monetary ecosystem throughout asset-classes – equities, crypto, tokenized securities, stablecoins, prediction markets. And leveraging blockchain rails to drive working effectivity.” Deutsche Financial institution raises worth goal to $73 from $54 The financial institution’s up to date goal displays greater than 30% upside from right here, and it reiterated its purchase score. “With the robust 4Q outcomes, and favorable mgmt’s commentary on the decision relating to development traction throughout a wide range of new merchandise and outlook for double-digit income development this yr (on high of fine expense self-discipline), we have gotten more and more snug on the stable EPS development outlook, at near a ~30% annual tempo throughout our forecast horizon. That is pushed by continued stable development in crypto transaction income, a ramp up in index choices and futures, and several other different areas that we conservatively mannequin – corresponding to occasion contracts anticipated to be launched later this yr.” Goldman Sachs will increase worth goal to $62 from $54 Goldman’s new forecast implies about 11% upside potential. It additionally has a purchase score on the inventory. “We imagine administration’s plan of constant to roll out new merchandise/options throughout platforms, geographic enlargement, and including further crypto merchandise ought to assist additional account and quantity development, and share features.”
