Robinhood Markets Stock: Earnings Beat but Crypto Revenue Declines
On July 31, Robinhood Markets (HOOD) reported better-than-expected Q2 earnings despite a significant drop in crypto revenue. The company's quarterly revenue rose to $1.3 billion and adjusted EPS reached $0.62, both exceeding Wall Street forecasts. However, crypto revenue fell by 38% year-on-year to $100 million due to declines in notional trading volumes and Bitstamp activity. Analysts remain cautiously optimistic about HOOD stock, with a consensus rating of 'Moderate Buy' based on 25 ratings from Wall Street analysts. The mean price target is $124.38, implying a potential upside of over 40%. Barclays recently lowered its price target to $105 but maintained an 'Overweight' stance. HOOD stock fell by 3.6% following the earnings report and has underperformed both the S&P 500 Index ($SPX) and the State Street Financial Select Sector SPDR ETF (XLF). The company's EPS is expected to decline slightly in fiscal year 2026.