Robinhood ( Ticker: HOOD), a disrupter financial services firm, is transforming the way people engage in investing. Through its user-friendly mobile app, Robinhood helps individuals to trade stocks, exchange-traded funds, and cryptocurrencies without paying any commissions.
In this article, we are going to discuss in detail Robinhood Stock Price Prediction for the coming years based on both technical and fundamental analysis.
As of now, the stock price of Robinhood stands at $9.40. Analysts anticipate that the price per share could reach $16.45 by 2025. However, if the company’s conditions improve, the average stock prices are projected to go even higher post-2025. We will discuss near-term, mid-term, and long-term Robinhood price predictions in detail.
Highlights
- Based on our analysis, we recommend a Hold rating for Robinhood
- Robinhood is expected to achieve profitability based on GAAP standards in 2023
- Robinhood currently holds over $6 billion in cash reserves and has no debt.
- By 2025, we expect Robinhood’s stock value to continue its growth. Our projections indicate a minimum price of $12.62 and a maximum price of $16.45.
Understanding Robinhood Inc.
Robinhood Inc is a company based in the United States that offers financial services to people. It was created in 2013 by Vladimir Tenev and Baiju Bhatt. Their main goal is to make finance accessible to everyone. They built an app that allows people to trade stocks, exchange-traded funds, and cryptocurrencies without paying any fees.
Robinhood’s innovative business model includes multiple revenue streams. The company leverages market makers and trading venues to generate income while providing commission-free trades to its users.
Apart from that, Robinhood earns revenue through margin interest and cash management services. By offering premium subscriptions known as Robinhood Gold, investors gain access to a comprehensive suite of cutting-edge tools, invaluable data, and exclusive features.
Robinhood Gold, an innovative subscription service, provides investors with an array of powerful resources. This premium offering unlocks advanced tools, allowing users to enhance their trading strategies and stay ahead of the curve.
With exclusive features such as extended trading hours and instant access to deposited funds, Robinhood Gold members gain a competitive edge in the fast-paced financial markets.
Business Model Analysts have done a good job of putting the SWOAT analysis on Robinhood which clearly identifies the opportunities and risks that Robinhood will have and that can impact Robinhood Price Prediction in the future.
However, the primary success behind initial Robinhood success and adoption by the masses can be attributed to its intuitive mobile app, which has revolutionized the investment experience.
Through a sleek and user-friendly interface, individuals can effortlessly navigate the world of finance. The app provides real-time market data, personalized news updates, and intuitive trading capabilities. Robinhood’s commitment to simplicity ensures that users, regardless of their level of expertise, can seize investment opportunities with confidence.
If you have not yet started using Robinhood. I would highly recommend giving the Robinhood trading platform a try and see for yourself.
Latest News About Robinhood Inc.
- In April, the number of people using the Robinhood stock-trading app decreased, and the volume of stock trades dropped by 29% compared to the previous year, amounting to $38.9 billion. Crypto trading volumes also went down by 47%. However, there was an increase in options contracts. The monthly active users declined by 26%, reaching 11.5 million.
- According to JMP analyst Devin Ryan, Robinhood is expected to achieve profitability based on GAAP standards in 2023. Ryan believes that the company is taking appropriate measures to support sustainable revenue growth and will benefit from its recently launched and upcoming product initiatives.
- Deutsche Bank has adjusted its price target for Robinhood Markets, raising it to $10 from $9 while maintaining a hold rating.
- Robinhood has been attracting a significant amount of customer funds through its Gold Sweep program. It offers a high annual percentage yield of 4.65% to these customers. However, Robinhood mentioned that this program doesn’t result in a substantial profit for the company, with a spread of approximately 0.5 percentage points. As more cash flows into the Gold program, it could dilute the overall yield generated by customer funds.
- In the first quarter, Robinhood Markets experienced a shift in revenue sources. For the first time since the beginning of the pandemic, the company generated more revenue from funds held by customers rather than from active trading.
- Robinhood has introduced a groundbreaking trading service called 24 Hour Market, aiming to enhance flexibility and simplify market access for its users. Currently, Robinhood is the sole US retail brokerage offering round-the-clock, five-day-a-week trading of individual stocks. Through this innovative service, traders can utilize limit orders to purchase whole shares of 43 highly traded ETFs and stocks, including renowned companies like TSLA, AMZN, and AAPL.
Robinhood Inc’s Latest Earnings
- At the end of April, the number of Net Cumulative Funded Accounts (NCFA) reached 23.1 million, showing an increase of approximately 30 thousand from March 2023(1).
- Monthly Active Users (MAU) at the end of April stood at 11.5 million, experiencing a decrease of around 300 thousand compared to March 2023.
- Assets Under Custody (AUC) by the end of April amounted to $77.4 billion, which represents a 1% decline from March 2023.
- In April, there were Net Deposits of $1.4 billion, indicating a 22% annualized growth rate relative to March 2023 AUC. Over the past twelve months, Net Deposits amounted to $17.4 billion, showing an annual growth rate of 22% compared to April 2022 AUC.
- Trading Volumes in April were lower compared to March 2023. Equity Notional Trading Volumes reached $38.9 billion, marking a 32% decrease. Options Contracts Traded amounted to 75.3 million, reflecting a 25% decrease. Crypto Notional Trading Volumes reached $3.7 billion, showing a 6% decrease.
- Margin Balances by the end of April remained consistent with March 2023, totaling $3.1 billion.
- Cash Sweep Balances by the end of April increased by $0.7 billion compared to the end of March 2023, reaching $9.6 billion.
Robinhood Technical Analysis: Is this the start of a bull run?
- Strong support level around $8 on the Robin Hood technical chart
- The stock has bounced off this $8 support level three times, indicating a bullish trend (triple bottom pattern)
- The most recent bounce occurred on May 24th
- This suggests that the stock is likely to move higher from this point
- There might be a resistance zone between $13 and $15, where the stock could face some selling pressure
- Despite this resistance, the stock could potentially continue its upward movement
- The Relative Strength Index (RSI) is a bit concerning, indicating a reading of 60 to 70
- The RSI suggests a possible short-term pullback
- Overall, the technical analysis suggests that a bull run may be starting for Robin Hood.
Robinhood Stock Price Prediction from 2023 to 2030
According to an analysis conducted by 10 Wall Street analysts over the past 3 months, Robinhood Markets has received 12-month price targets. The average price target stands at $11.60, with the highest forecast being $25.00 and the lowest forecast at $8.00.
This average price target implies a projected change of 21.98% from the most recent trading price of $9.51. These forecasts reflect the analysts’ assessments and expectations regarding the potential future value of Robinhood’s stock.
The range of price targets provided by these analysts indicates varying opinions on the company’s future performance. The high forecast of $25.00 suggests an optimistic outlook, indicating the possibility of significant growth in the stock’s value.
On the other hand, the low forecast of $8.00 portrays a more cautious viewpoint, suggesting a potential decline or limited growth.
Here is a quick view of the long-term Robinhood Stock Price Prediction :
| Year | Minimum Price ($) | Average Price ($) | Maximum Price ($) |
|---|---|---|---|
| 2023 | $6.55 | $7.01 | $9.47 |
| 2024 | $9.13 | $12.21 | $15.28 |
| 2025 | $12.62 | $14.54 | $16.45 |
| 2026 | $14.89 | $16.52 | $18.15 |
| 2027 | $17.45 | $19.96 | $22.48 |
| 2030 | $35.50 | $39.88 | $44.25 |
Robinhood Stock Price Prediction 2023
If the market performs well, the value of Robinhood could continue to rise throughout this year. Our Robinhood Stock Forecast 2023 suggests that the overall performance of Robinhood stock will be strong. We have carefully examined various factors such as the company’s performance, current market conditions, and technical details.
According to our Robinhood Stock Forecast 2023, we anticipate that Robinhood stock may reach a maximum price of $9.47 in 2023, with a minimum of $6.55. On average, we estimate that the stock will be priced at around $7.01 in 2023. These projections consider the current market trends and the specific performance indicators of Robinhood.
Robinhood Stock Price Prediction 2024
Looking ahead, our Robinhood Stock Forecast indicates a positive outlook for Robinhood’s stock price in the upcoming years. In 2024, we anticipate the stock to have a minimum price of $9.13 and a maximum price of $15.28. The average price is projected to be approximately $12.21.
Robinhood Stock Price Prediction 2025
By 2025, we expect Robinhood’s stock value to continue its growth. Our projections indicate a minimum price of $12.62, a maximum price of $16.45, with an average price of around $14.54. It’s important to note that Robinhood currently holds over $6 billion in cash reserves and has no debt.
With such strong financial standing, Robinhood has ample resources to sustain its investment for further growth. This financial stability provides a solid foundation for the company to continue pursuing its expansion plans and capitalize on new opportunities in the market.
Robinhood Stock Price Prediction 2026
Looking ahead to the years 2026 and 2027, our Robinhood Stock Forecast suggests a continuation of a positive trend. During this period, the stock is projected to have a minimum price of $14.89 and a maximum price of $18.15 in 2026. The average price is estimated to be around $16.52.
Robinhood Stock Price Prediction 2027
In 2027, Robinhood’s stock value is expected to range between a minimum of $17.45 and a maximum of $22.48, with an average price of approximately $19.96. These projections suggest the potential for continued growth and performance in the stock’s value.
Robinhood Stock Price Prediction 2030
Looking further ahead to 2030, our analysis suggests that Robinhood’s stock price could reach a maximum of $44.25, with an average price of $39.88. It is important to note that Robinhood has a strong position in the market, but its current valuation already incorporates a significant portion of its potential growth.
However, it’s not all negative. Robinhood possesses substantial capital on its balance sheet, providing ample time for its growth story to unfold over the next five years. This indicates that the company has the resources and flexibility to seize opportunities and drive significant advancements in the coming years.
Is Robinhood Stock a Good Investment?
When it comes to investing in Robinhood, it’s important to consider a few things. I’m not saying you should buy it, but I’m also not necessarily saying you should sell it.
If your portfolio is severely impacted by a 5-10% of stock drop then you should avoid it as Robinhood may see its share of ups and downs in the near term however It’s worth noting that many companies have faced challenges over the past year, partly due to factors like the Federal Reserve’s actions. Some companies have struggled to meet expectations, while others have exceeded them.
Looking ahead, I believe that in the coming months, most companies will stabilize their operations, leading to a more predictable environment. So in the mid to long term, this should stabilize further and could prove to be a higher returning stock beating the average return of the S&P 500.
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Frequently Asked Questions
What Is Robinhood’s Average 12-month Price Target, According To Analysts?
According to an analysis conducted by 10 Wall Street analysts over the past 3 months, Robinhood Markets has received 12-month price targets. The average price target stands at $11.60, with the highest forecast being $25.00 and the lowest forecast at $8.00.
How high is Robinhood stock expected to go?
Based on our long-term forecast Robinhood stock is expected to hit a high of $16.45 by 2025 and a max price of above $40 by year 2030.
Is Robinhood stock a good long term investors?
I believe that in the coming months, most companies will stabilize their operations, leading to a more predictable environment. So in the mid to long term, this should stabilize further and could prove to be a higher returning stock beating the average return of the S&P 500.
Is Robinhood a buy sell or hold?
According to several analysts’ rating and their current quarterly results the Robinhood stock has a Hold rating.
Final Take
Robinhood has completely disrupted the traditional way of investing, particularly for beginners who were previously hesitant to enter the market.
The user-friendly and intuitive nature of the app has made investing accessible even to those with limited knowledge, including school kids.
This simplicity has attracted a significant number of users to Robinhood, ranging from novices to expert investors who handle multimillion-dollar accounts. Additionally, Robinhood’s inclusion of features like options trading has made it easy for anyone to learn and participate in this aspect of investing.
Their user-friendly interface remains a significant advantage, and if the optimistic market conditions persist, it is likely that Robinhood will outperform the average returns of the S&P 500. With these factors in mind, the future looks promising for Robinhood as they continue to innovate and cater to the needs of investors in a rapidly evolving landscape.
Robinhood’s strong financial position, with a substantial amount of cash on hand, allows them to invest in research and development, giving them a competitive edge over traditional players like Fidelity and Charles Schwab. In light of these factors and the optimistic market conditions, it is reasonable to consider a positive Robinhood price prediction.
Disclaimer - Please note that these predictions and analyses are for informational purposes only. We recommend our readers conduct in-depth research before investing in any stock and follow risk management techniques due to the volatile nature of the stock market.
