BUZZ-Robinhood Markets extend losses after Needham cuts PT
Robinhood Marketsshares fell 6.6% to $41.11 after Needham analysts reduced their price target from $70 to $62, citing decreased crypto trading volumes. Despite a projected $100 million revenue boost from its prediction markets in 2025, macroeconomic challenges are expected to impact crypto volumes more significantly than equities. The stock is on track for its fourth consecutive session of losses and a second consecutive month of declines, although it remains up approximately 11% year-to-date. The average rating among 21 analysts is "BUY" with a median price target of $63.50.
Robinhood Markets’ (HOOD.O) stock is down 6.6% at $41.11 on Fri after Needham analysts cut their price target citing downward revision in crypto trading volumes from retail customers partly offset by an increase in revenue from its prediction markets offering
HOOD is on track for the fourth straight session of losses and on track for the consecutive month of loses in March. It is up ~11% YTD with today’s move
The rollout of HOOD’s prediction markets offering since Oct. 2024 will likely add about $100 mln in revenue in 2025 but that is offset by estimated lower crypto trading, said Needham analysts led by John Todaro
“As the crypto market has cooled, retail customers experience a “flushing out” effect. We see macro headwinds in 1H’25 (i.e. tariffs, US fiscal austerity) impacting HOOD’s crypto volumes more than equities/options, which we brought modestly lower,” Todaro says
Needham cuts PT to $62 from $70 but retained its “buy” rating
Among 21 analysts that cover HOOD, avg rating is “BUY” and median PT is $63.50
Earlier this week, HOOD announced it will roll out wealth management and private banking services on its platform