Goldman Sachs, Barclays, and Jefferies slashed their price targets for Robinhood Markets (HOOD) shortly after the company reported better-than-expected second-quarter revenue and earnings. The Nasdaq-listed brokerage posted a 32% revenue increase to a record $1.31 billion and beat profit estimates, yet shares slipped nearly 2% in early trading.
Earlier in July, Goldman and Jefferies had raised their price targets to $137, but now Goldman lowered it to $118 and Jefferies to $127. Barclays made the deepest cut, dropping its target from $122 to $105. Analysts kept bullish ratings but shifted expectations toward Robinhood’s core trading business as the main growth driver through 2027, casting doubt on the short-term impact of newer product lines.
Mixed signals despite strong earnings
Robinhood’s earnings report showed diluted earnings per share climbed 48% to $0.62, although around $0.14 of that reflected one-time gains from a fund deconsolidation. Crypto trading remains a weak spot; crypto revenue was $100 million, missing the mark with a 38% decline year-over-year and now representing just 8% of net revenue, down from 16%. This drop stems from fewer users making crypto trades and reduced market-maker rebate rates.
Despite beating revenue and profit forecasts, Robinhood’s shares keep struggling. The stock is trading near $88, about 42% below its October 2025 record. Barclays noted that Robinhood's newer revenue streams will take years before they substantially contribute to growth, leaving existing businesses to sustain near-term momentum.
This content is informational and does not constitute financial advice.
