Robinhood is No ‘Financial Super App’ as Needham Slashes Price Target on Crypto Woes

Shares in online brokerage Robinhood Markets (HOOD) slumped today after a leading analyst cut his price target on the stock and declared it was too early to call it a “financial super app.”

Slower Growth

John Todaro, analyst at Needham, reduced his price target on the stock from $100 to $90, with a Buy rating because of slower growth across the platform.

“It’s led us to decrease our estimates in nearly every segment for Q1’ 26,” Todaro wrote in a note. “We see HOOD as the farthest along financial services platform in becoming a financial super app, but the recent volume metrics and lowered net interest revenue reflect a more muted environment.”

He is referring to figures released by Robinhood on March 30, which revealed that during March equity notional trading volumes were approximately $196 billion, option contracts traded were 187 million and crypto notional trading volumes were $16 billion. More details will follow when it releases Q1 figures in May.

Lower Revenue Forecasts

“We lowered our equities and options estimates for Q1, but kept crypto volumes flat versus our prior estimates,” Todaro said. “Additionally, we lower our revenue estimates in 2026 and 2027, primarily driven by lower expected trading volumes and lower net interest revenues.”

The estimates cut came only a day after Wolfe Research analyst Steven Chubak lowered his price target for Robinhood from $115 to $81, reflecting a steep drop of roughly 30%. The firm’s revision comes after the HOOD stock fell as its crypto transaction revenue slumped. This decline has also been fueled by the broader weakness seen in the crypto market.

Is HOOD a Good Stock to Buy Now?

On TipRanks, HOOD has a Strong Buy consensus based on 15 Buy and 2 Hold ratings. Its highest price target is $147. HOOD stock’s consensus price target is $117.33, implying a 67.36% upside.