Robinhood new products support revenue diversification, says Morgan Stanley

Morgan Stanley notes that Robinhood (HOOD) announced new products and updates at its annual Gold Event, including three new services: Robinhood Strategies, a customizable advisory program with “disruptive” pricing; Robinhood Banking, a holistic offering for families with peer-to-peer cash transfer; and Robinhood Cortex, an AI-powered trading tool and information aggregator. The announcements were largely in line with what the firm forecasted, but with “upside surprise” on peer-to-peer transfers, cash delivery, AI tools and a trade builder tool, says the analyst, who argues that the new products support revenue diversification and broadening customer appeal of the platform. Morgan Stanley reiterates an Overweight rating and $90 price target on Robinhood shares.