Robinhood’s (HOOD) robust second-quarter earnings Wednesday night have prompted Wall Road to boost its expectations for the inventory, however the modest boosts counsel the group believes a lot upside has been priced in.
Shares are buying and selling barely greater Thursday morning at $106.50.
Citi, which lifted its value goal to $120 from $100, continued with a impartial ranking on the inventory. Even after revising his earnings estimate sharply greater, analyst Christopher Allen warns that a lot of Robinhood’s future progress is already priced into the inventory, which has almost tripled from its mid-April low and is greater by a whopping 420% year-over-year.
Additionally ranking HOOD impartial, JPMorgan analyst Kenneth Worthington boosted his December 2026 value goal to $104 from $98, citing a “almost good working setting with significant volatility, strong retail engagement, and traditionally elevated charges as each its buying and selling and rate-sensitive segments carried out nicely.” The agency’s acquisition of crypto trade Bitstamp helped Robinhood submit $160 million in crypto income — about 16% of its whole — fueled by $6.7 billion in notional buying and selling quantity from Bitstamp.
Keefe, Bruyette & Woods — additionally impartial — raised its goal to $106 from $89, emphasizing positive aspects in securities lending and a rebound in crypto buying and selling, notably from Bitstamp. The agency additionally revised its EPS estimates upward for the subsequent three years, citing growing person engagement and improved margins.
Cantor Fitzgerald’s Brett Knoblauch — alone amongst this group with a purchase ranking on HOOD — raised his value goal from $100 to $118, suggesting a modest 10% upside from present ranges. His group is now valuing Robinhood at 40x 2026 EV/EBITDA and Knoblauch believes the corporate has room for much more progress in crypto, choices, and margin curiosity income. He pointed to robust momentum throughout new merchandise comparable to Robinhood Methods, crypto staking, and the soon-to-launch Robinhood Banking service.
What does this imply for Coinbase’s earnings later at the moment?
Robinhood’s crypto income was bolstered by the addition of Bitstamp’s institutional move, however it additionally benefited from retail merchants returning to the market. If Coinbase experiences related exercise — particularly from retail — it might sign a broader resurgence in crypto engagement. Coinbase’s enterprise is extra closely reliant on crypto and institutional exercise, so Robinhood’s robust outcomes might foreshadow a beat if those self same developments performed out on Coinbase’s platform.
Nonetheless, Coinbase lacks Robinhood’s diversification into curiosity earnings and securities lending, which insulated Robinhood from volatility in crypto markets final yr. That places extra stress on Coinbase to point out that crypto buying and selling volumes alone can drive earnings progress. Traders shall be watching intently.
FactSet initiatives COIN will report $1.59 billion in income and $1.25 in earnings per share for the second quarter, each up from the identical interval final yr. Shares are up 1.6% at the moment, buying and selling at $383.56 a chunk.