Robinhood (HOOD) fell 14% on Wednesday morning after the electronic trading platform posted weaker-than-expected Q1 results, leading to price target cuts across Wall Street. The analysts believe that softer revenues, lower take rates, and rising expenses weighed on results. However, Cantor Fitzgerald’s Ramsey El‑Assal noted that the current share price looks attractive for long‑term investors.
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He said the Q1 revenue and EPS miss was mostly due to broader market softness, such as weaker options and crypto volumes and lower securities lending activity, rather than problems with Robinhood’s core business.
El‑Assal noted that April equity and options volumes are tracking at the highest levels of the year, showing signs of stability. Crypto remains soft, but he believes the stock has been punished too heavily, given that crypto made up only about 13% of Q1 revenue. He also pointed to future growth levers such as prediction markets, tokenization, retirement accounts, and international expansion.
Analysts Lower Targets but See a Rebound in Trading Activity
Meanwhile, Barclays analyst Benjamin Budish lowered his target to $82 from $89 while keeping a Buy rating. The five-star analyst said Q1 “missed across the board,” due to weaker take rates in options and crypto, as well as lighter-than-expected net interest income.
He noted that April shows mixed signals. Trading volumes are improving, but Robinhood is still facing fee pressure in both options and crypto. Prediction market activity was better-than-expected, but still far below competitor Kalshi. Because of these headwinds, Budish lowered his estimates even though a few April trends looked positive.
Similarly, John Todaro from Needham reduced his price target to $85 from $95 but kept a Buy rating. He called Q1 a “narrow miss” and highlighted that April is on track to be the highest‑volume month of 2026 for equities and options.
What Is the Prediction for HOOD Stock?
Overall, Wall Street is bullish on HOOD stock with a Strong Buy consensus rating based on 15 Buy and three Hold recommendations. The average Robinhood stock price target of $104.53 indicates an upside of 47.93% from current levels.
