The Goldman Sachs Group, Inc.

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Slightly Bearish -20

Goldman Sachs, Barclays, Jefferies Cut Robinhood (HOOD) Stock Price Target

📉 Goldman Sachs, Jefferies, and Barclays cut their price targets for Robinhood (HOOD) following Q2 earnings.

💰 Robinhood reported record Q2 revenue of $1.31 billion and EPS of $0.62, beating Wall Street estimates.

📉 Crypto revenue plummeted 38% year-over-year to $100 million, causing HOOD stock to fall 4% in after-hours trading.

🏦 Goldman Sachs maintained a Buy rating but lowered its 12-month price target from $137 to $118.

📉 Jefferies analyst Daniel Fannon reduced the price target to $127, maintaining a Buy rating on the stock.

📉 Barclays analyst Benjamin Budish cut the price target sharply to $89 while keeping an Overweight rating.

🚀 Bernstein raised its price target to $160 due to rising growth in prediction markets and tokenized equities.

🏛️ Analysts cite a hawkish Federal Reserve and broader fintech sector adjustments as reasons for the lower targets.

🔮 New initiatives like Robinhood Chain are expected to become material to revenue in future years.

📈 HOOD stock rebounded 0.94% in premarket trading after the initial post-earnings decline.

Bullish Signals
  • Robinhood reported record Q2 revenue of $1.31 billion and EPS of $0.62, both beating Wall Street estimates.
  • Bernstein raised its price target to $160 driven by growth in prediction markets, perpetual futures, and tokenized equities offerings.
  • Jefferies maintained a Buy rating on HOOD despite the price target cut, citing expansion into new markets like tokenization.
  • Barclays maintained an Overweight rating, noting that near-term growth will rely on existing businesses while new initiatives become material later.
Risk Factors
  • Robinhood's crypto revenue declined 38% year-over-year to $100 million, leading to a 4% drop in after-hours trading.
  • Goldman Sachs lowered its price target from $137 to $118, citing growing headwinds and slower upside momentum.
  • Jefferies reduced its price target from $137 to $127 as analysts reevaluate trading volumes amid a hawkish Fed environment.
  • Barclays cut its price target significantly from $122 to $89, reflecting concerns about the current revenue outlook.
Full Analysis
Wall Street analysts Goldman Sachs, Jefferies, and Barclays have lowered their price targets for Robinhood (HOOD) following the company's Q2 earnings report. Despite Robinhood reporting record revenue of $1.31 billion and EPS of $0.62, which beat Wall Street estimates, the stock faced headwinds due to a significant 38% year-over-year decline in crypto revenue to $100 million. Goldman Sachs maintained its Buy rating but cut its 12-month price target from $137 to $118, citing slower upside momentum. Jefferies analyst Daniel Fannon reduced the target to $127, while Barclays analyst Benjamin Budish made a sharper cut to $89. The analysts attribute these adjustments to broader reevaluations of trading volumes and revenue outlooks in the fintech sector amid a hawkish Federal Reserve stance. In contrast to the bearish price target cuts, Bernstein raised its price target to $160, driven by growth in prediction markets, perpetual futures, and tokenized equities. Robinhood stock fell approximately 4% in after-hours trading before rebounding slightly in premarket hours. Analysts note that near-term growth will depend on existing businesses, while new initiatives like Robinhood Chain are expected to become material in coming years.