{"id":10618,"date":"2026-07-05T02:26:37","date_gmt":"2026-07-05T02:26:37","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=10618"},"modified":"2026-07-05T02:26:37","modified_gmt":"2026-07-05T02:26:37","slug":"goldman-sachs-doubles-down-on-robinhood-stock-after-record-trading-surge","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=10618","title":{"rendered":"Goldman Sachs doubles down on Robinhood stock after record trading surge"},"content":{"rendered":"
<\/p>\n
Robinhood<\/strong> has spent the last year adding businesses at a pace few brokerages can match. Prediction markets, banking, an AI trading assistant, and a new credit card all launched within months of each other.\u00a0<\/p>\n
Now Wall Street is starting to price in what that expansion means for the bottom line.<\/p>\n
Analysts are bullish on Robinhood stock<\/strong><\/h2>\n
Robinhood (HOOD) built its name on commission-free trading, but that is a small part of the story now. <\/p>\n
Chief Brokerage Officer Steve Quirk told attendees at the Piper Sandler Global Exchange and Fintech Conference on June 4 that the company logged its second-highest month ever for equity and options trading in April, and its best month ever for futures and prediction markets.\u00a0<\/p>\n
He added that June 1 brought Robinhood’s biggest single day of equity trading and its biggest overnight trading session on record.<\/p>\n
CEO Vlad Tenev struck a similar tone at Robinhood’s annual shareholder meeting on June 2, telling investors the company now has 11 business lines generating more than $100 million a year, up from a business once built almost entirely on trading commissions.\u00a0<\/p>\n
More Goldman Sachs:<\/strong><\/h3>\n
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Goldman Sachs doubles down on stock market outlook for 2026<\/strong><\/li>\n
Goldman hints at Fed\u2019s next interest-rate bet under Warsh<\/strong><\/li>\n
Goldman Sachs has blunt message for AI stock investors<\/strong><\/li>\n<\/ul>\n
He pointed to prediction markets, which passed $400 million in annualized revenue after launching just 18 months earlier, and to Agentic Trading. <\/p>\n
This new tool lets customers hand trading decisions over to an AI assistant within a separate, walled-off account.<\/p>\n
“We continue to grow,” Tenev stated. “We continue to win market share across several verticals. The core business continues to be strong.”<\/p>\n
That backdrop is why Goldman Sachs and BTIG have grown more bullish in recent days.\u00a0\u00a0<\/p>\n
\n
Goldman analyst James Yaro raised his price target to $121 from $108 while keeping a “buy” rating, citing preliminary June data showing record volumes in event contracts, options, equities, and crypto.\u00a0<\/li>\n
The move came days after BTIG initiated coverage with a “buy” rating and a $125 target, with analyst Andrew Harte calling Robinhood “born to disrupt, built to compound” and predicting the company could grow its assets by more than 20% per year over the next decade.\u00a0<\/li>\n
Robinhood’s June volume, roughly $343 billion in equities, 274 million options contracts, and $14 billion in crypto activity, was fueled in part by the 2026 FIFA World Cup, which drove prediction-market bets through Rothera, the company’s own exchange and clearinghouse.\u00a0 \nSource: Stocktwits\n<\/li>\n<\/ul>\n\n
Vlad Tenev, CEO of Robinhood Markets, continues to expand the company’s product portfolio<\/p>\n
Michael M. Santiago/Getty Images<\/p>\n<\/figcaption><\/figure>\n
Is Robinhood stock fundamentally strong?<\/strong><\/h2>\n
Robinhood’s balance sheet, as of the quarter ending March 2026, shows total assets of $45.5 billion, up from $27.5 billion a year earlier.\u00a0<\/p>\n
Shareholders’ equity climbed to $9.7 billion from $8 billion, and cash on hand grew to just over $5 billion.\u00a0<\/p>\n
Retained earnings remain negative at about $1.8 billion. Still, that gap has narrowed sharply from -$3.7 billion a year ago, indicating the company is steadily working off past losses.\u00a0<\/p>\n
Total revenue hit $1.07 billion for the March quarter, up more than 15% from a year earlier, with a gross margin near 94%.\u00a0<\/p>\n
Related: Robinhood stock falls as company unveils $2 billion debt plan<\/strong><\/p>\n
Operating profit came in at $411 million, indicating a margin of over 38%. Net income landed at $346 million, translating to diluted earnings of $0.38 per share.<\/p>\n
Cash flow is where the turnaround shows up most clearly.\u00a0<\/p>\n
Operating cash flow swung to a positive $2 billion in the March quarter after two straight negative quarters, and free cash flow followed suit, reaching about $2 billion.\u00a0<\/p>\n
Capital spending remains minimal, under $10 million, which is normal for a software-driven brokerage with little physical infrastructure to maintain.<\/p>\n
Taken together, the picture points to a fundamentally strong company right now. <\/p>\n
Margins are high, revenue is growing at a double-digit pace, and cash generation has turned firmly positive after a rocky stretch tied to swings in trading-related working capital, a common pattern for brokerages during volatile markets.<\/p>\n
Robinhood still depends heavily on trading volume, which can cool off fast once markets calm down. <\/p>\n
But for now, the fundamentals and the Wall Street mood are pointing in the same direction.<\/p>\n
Is Robinhood stock undervalued<\/strong>?<\/h2>\n
Analysts tracking Robinhood stock forecast revenue to increase from $4.47 billion in 2025 to $8 billion in 2029. In this period, adjusted earnings per share is estimated to expand to $4.67 from $2.34.<\/p>\n
If HOOD stock is priced at 30x forward earnings, which is reasonable given its growth rates, it could return 25% within the next three years. If the forward earnings multiple expands to 40x, HOOD stock could surge 67%. <\/p>\n
Out of the 19 analysts covering Robinhood stock, 16 recommend “buy” and three recommend “hold.”<\/p>\n
The average HOOD stock price target is $105, which is 7% lower than the current trading price. <\/p>\n
Related: Robinhood CEO launches bold agentic AI trading feature<\/strong><\/p>\n
Robinhood has spent the last year adding businesses at a pace few brokerages can match. Prediction markets, banking, an AI trading assistant, and a new credit card all launched within… <\/p>\n","protected":false},"author":1,"featured_media":10619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[2390,1360,1419,6699,1361,91,610,698],"class_list":["post-10618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-doubles","tag-goldman","tag-record","tag-robinhood","tag-sachs","tag-stock","tag-surge","tag-trading"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10618"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/10619"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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