Robinhood CEO Says $1T Market Cap Goal Is Possible, But Analysts Remain Cautious Despite Q2 Earnings Beat

Barclays lowered its Robinhood price target to $105 from $122 and cited a meaningful slowdown in new accounts during July.

• Robinhood reported second-quarter adjusted earnings per share of $0.62, above Wall Street’s estimate of $0.43.
• CEO Vlad Tenev said reaching a $1 trillion market capitalization would be difficult but achievable for Robinhood.
• Crypto revenue declined 38% year over year to $100 million, while options, equities, and prediction markets supported transaction revenue growth.

Shares of Robinhood (HOOD) swung in pre-market trade on Thursday after CEO Vlad Tenev said the company could eventually reach a $1 trillion market capitalization, but Wall Street analysts remained cautious despite the brokerage’s second-quarter earnings beat.

“I think getting to $1 trillion will be very, very difficult. I don't think a financial company has ever hit $1 trillion market cap,” Tenev said during the earnings call. “But I think it can be done.”

HOOD stock fluctuated between positive and negative territory before market open, while remaining among the top-trending tickers on Stocktwits.

Robinhood Posts Record Revenue

Robinhood reported adjusted earnings per share of $0.62, above analysts’ estimate of $0.43, as per Koyfin. Revenue climbed 32% year over year to a record $1.31 billion, narrowly exceeding Wall Street expectations of $1.29 billion.

The results reflected continued momentum across Robinhood’s broader product lineup, with transaction revenue benefiting from increased activity in options, equities and prediction markets. However, crypto trading activity weakened during the quarter. Crypto revenue fell 38% year over year to $100 million from $160 million.

Wall Street Lowers Price Targets

Despite the HOOD’s Q2 beat, some analysts lowered their price targets on the stock, as per TheFly.  Barclays cut its price target on Robinhood to $105 from $122 while maintaining an ‘Overweight’ rating. 

The firm said Robinhood’s earnings before interest, tax, depreciation, and amortization (EBITDA) came in ahead of expectations, driven by expense savings, while revenue growth was more modest. However, Barclays noted that new account growth slowed “meaningfully” in July.

Goldman Sachs also lowered its price target on Robinhood to $118 from $137 while maintaining a ‘Buy’ rating on the stock. Needham analyst John Todaro lowered its price target to $120 from $123 and also kept a ‘Buy’ rating on the shares. 

Retail Traders Remain Focused On Robinhood’s Growth Story

Retail sentiment on Stocktwits around Robinhood rose to ‘neutral’ from ‘bearish’ territory over the past day, while chatter increased to ‘high’ from ‘normal’ levels. Platform data an over 200% jump in message volume in the last 24 hours. 

One Stocktwits user said the company’s products have continued to impress and that Robinhood’s plans to become a trillion-dollar financial company show its ambition.

Another trader questioned the market reaction, writing that “HOOD crushed it” despite the stock’s muted response.

View this Stocktwits post

HOOD’s stock has fallen over 20% this year and around 15% in the last 12 months.