Shares of trading platform Robinhood Markets (HOOD) surged today after a major rule change from the SEC. Indeed, the regulator decided to remove the long-standing $25,000 minimum balance requirement for day traders. Before this, smaller investors were limited in how often they could trade. However, they can now trade more freely as long as they have enough money to cover each trade. Interestingly, analysts believe that Robinhood could benefit more than traditional brokerage firms.
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Fundstrat’s Sean Farrell called the move clearly bullish after noting that Robinhood users usually have smaller account balances. This means that a larger portion of its users can now actively trade without restrictions. In addition, Farrell suggested that Robinhood could still perform well even if crypto trading slows down, since it offers other types of trading activity. Other analysts are also becoming more positive on the company.
For instance, Bernstein’s five-star-rated Gautam Chhugani recently maintained a Buy rating on Robinhood with a $130 price target due to strong crypto activity and growth in prediction markets. In fact, revenue from users betting on event outcomes is expected to grow by 286% year-over-year in 2026, which would make up about 10% of total revenue and 17% of transaction-based revenue. Moreover, with major events like the World Cup and U.S. midterm elections coming up, trading activity could increase further and provide Robinhood with several potential growth drivers.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 14 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $104.56 per share implies 21.1% upside potential.
