Robinhood Stock Falls Despite Bullish Wall Street Reaction To HOOD Summit – Morgan Stanley Eyes ‘Two Key Products’

Robinhood plans to offer perpetual futures for eligible U.S. customers and 24/7 weekend equities trading.

• Robinhood announced AI agents that can build strategies and trade around the clock.
• Morgan Stanley called agentic trading and U.S. perps the "two key products" it was watching.
• Apart from Morgan Stanley, Deutsche Bank and KeyBanc also viewed Robinhood’s active-trading as a positive catalyst.

Robinhood (HOOD) stock fell in morning trade on Wednesday after the launch of agentic trading and U.S. perpetual futures at the HOOD Summit, with Morgan Stanley (MS) watching these "two key products.”

According to a note to investors cited by TheFly, Morgan Stanley analyst Michael Cyprys held an 'Overweight' rating on Robinhood shares alongside a $150 price target. He stated the active trader enhancements announced at the summit were broader than Morgan Stanley expected heading into the event. 

Morgan Stanley was not the only firm bullish on HOOD stock. Deutsche Bank reiterated its ‘Buy’ rating with the $134 target, while KeyBanc raised its price target to $140 from $130, citing Robinhood's new active-trading products.

HOOD stock was down 1.6% in morning trade and was among the top trending tickers on Stocktwits. Retail sentiment around HOOD on the platform improved to ‘neutral’ from the 'bearish' zone, while chatter stayed at 'low' levels over the past day. Morgan Stanley’s price target implies roughly 30% upside from current levels.

Bitcoin, Ethereum Perpetual Futures With Up To 10x Leverage

At the summit, Robinhood announced a number of new products. The centerpiece was Robinhood Agents, a fully embedded AI experience the company said could analyze markets, build strategies, and trade on a user's behalf around the clock. 

The perpetual futures will be crypto contracts. The company said qualifying customers can go long or short on Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP (XRP), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK) and Hyperliquid (HYPE) with no expiry dates. Leverage will be increased to 10 times on Bitcoin and Ether and 3 times on everything else. 

Robinhood Announced Derivative Contracts, 24/7 Equities Trading

The company stated that it will launch Robinhood Derivatives contracts through Bitstamp and will charge 0.01% per trade through the end of the year. The launch is expected in the coming months.

Robinhood also announced plans for 24/7 weekend equities trading, perpetual futures for eligible U.S. customers, and earnings contracts tied to key company metrics. The company called the rollout its boldest step forward yet in its mission to become the top platform for active traders.

Robinhood CEO On Safety Concerns

CEO Vlad Tenev said in an interview with CNBC on Wednesday that the product was “designed with safety from the very beginning”. He added that trade approvals are on by default, so customers can review everything the agent does before it executes.

He added that users who want to run an agent fully autonomously can turn that feature off. The agents are also “and work in a separate agentic account, so “can't just go into your main Robinhood balance or your retirement account and trade those funds, added Tenev.

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