Shares of Robinhood Markets Inc (NASDAQ:HOOD) are trading flat on Monday. Following a turbulent week of trading last week, the stock rallied to a new all-time high. Here’s what investors need to know.
What To Know: Last week, investor enthusiasm was significantly fueled by a series of major announcements centered on an aggressive expansion into the cryptocurrency market. The company revealed its planned acquisition of the Bitstamp crypto exchange and the introduction of commission-free tokenized U.S. equities and perpetual futures for its European customers.
This strategic push into digital assets aims to establish “crypto as the backbone of the global financial system,” according to CEO Vlad Tenev.
This ambitious roadmap for international growth and innovation prompted KeyBanc Capital Markets to nearly double its price target on Robinhood to $110, maintaining an Overweight rating.
The firm cited Robinhood's “first-rate innovation” and “TAM expansion” as key drivers for the upgraded outlook, projecting revenues of $3.77 billion and a GAAP EPS of $1.31 for 2025.
However, the week was not without its setbacks. The stock experienced a brief retreat after it was not included in the latest S&P 500 index reconstitution, a development many investors had anticipated.
Additionally, following public warnings from OpenAI disavowing any partnership over Robinhood’s new “stock tokens,” CNBC earlier on Monday reported Lithuania’s central bank is now seeking clarification from the company.
The regulator, which is Robinhood’s lead authority in the EU, is assessing the legality of the financial instruments and whether the communication to investors is fair and not misleading.
Analyst Ratings: Wall Street has shown a flurry of recent activity around Robinhood, with sentiment leaning positive. Last week, Mizuho maintained its Outperform rating while raising its price target to $99. This follows similar bullish moves in late May from Goldman Sachs and Compass Point, both of which reiterated Buy ratings with increased targets.
However, conviction is not universal. In early May, Redburn Atlantic took a more cautious stance, downgrading the stock to Sell with a price target of $40 to $48.
Price Action: According to data from Benzinga Pro, HOOD shares are trading marginally lower by 1.19% to $93.28 during Monday’s session. The stock has a 52-week high of $100.88 and a 52-week low of $13.98.
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How To Buy HOOD Stock
By now you're likely curious about how to participate in the market for Robinhood Markets – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Robinhood Markets, which is trading at $94.44 as of publishing time, $100 would buy you 1.06 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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