Robinhood (HOOD -1.56%) hasn't announced any plans to launch single-stock perpetual futures on its platform yet, but there seems to be a lot of pent-up demand for them. In a recent Mizuho (MFG -1.44%) survey of over 600 active Robinhood users, 94% of respondents were willing to trade single-stock perpetual futures if they became available. Let's see why that could be bullish for Robinhood's stock -- which has declined nearly 30% over the past 12 months.
In traditional investing, investors can buy options to either buy a stock (a call) or sell it (a put) at a fixed strike price with a set expiration date. As an option approaches its expiration date, its value declines because there is less time remaining for the stock to make a major move.
Image source: Getty Images.
Single-stock perpetual futures are similar to calls and puts, but they don't have strike prices or expiration dates. Instead, an investor simply takes a bullish or bearish position in a stock, deposits cash as collateral, and chooses a leverage ratio that multiplies their gains or losses.
For example, depositing $200 at 5x leverage gives you $1,000 of exposure to an underlying stock. If that stock starts trading at $100 and rises by $10, your $1,000 position grows to $1,100 -- giving you a $100 profit on your $200 deposit. If it drops 10% to $90, it shrinks to $900 -- resulting in a $100 loss. If the stock drops near $80, the platform automatically liquidates the entire position before it consumes your entire $200 deposit.
To keep the contract's price tethered to the actual stock price without fixed strike prices or expiration dates, the buyers and sellers pay each other small funding fees. When buyers push the contract's price above the actual stock, the longs pay the shorts a periodic fee; when selling pressure pushes it lower, the shorts pay the longs a periodic fee.
HOOD Robinhood Markets$95.07-$1.51 (-1.56%)
NASDAQ · As of 4:00 PM ET 10/23/26
Why could this be bullish for Robinhood?
Robinhood already launched perpetual futures for cryptocurrencies in the U.S. and Europe this year, so it seems like a natural move to launch them for individual stocks as well. It would also complement its forward-thinking strategy of entering new markets -- including tokenized real-world assets (RWAs) and prediction markets -- before traditional brokerages.
Robinhood's stock slumped over the past year as rising interest rates and Treasury yields curbed the market's appetite for riskier investments. But many of its funded customers -- which grew 7% year over year to 28.4 million in the second quarter of 2026 -- could still be interested in using single-stock perpetual futures to trade some more volatile stocks with less capital. Therefore, expanding into that nascent market could be a bullish sign for Robinhood's stock.
Stephanie Guild, CIO of Robinhood, joins Scarlet Fu and Tom Keene on "Bloomberg Money." They discuss how she is seeing consumers take advantage of the pullback in AI, having cash on the side to invest, and how Robinhood users can now use agentic AI agents to invest on their behalf.
Robinhood Markets (HOOD -1.56%) started with a simple idea: Make it easier for ordinary people to invest.
That sounds like a single business. But it isn't anymore. By the second quarter of 2026, Robinhood had 13 business lines generating at least $100 million of annualized revenue. That's up from just one in 2019 and nine in 2024.
At first, this might look like another impressive growth statistic. But digging deeper, I think it tells us something more important -- that Robinhood is getting better at turning one customer relationship into multiple sources of revenue.
Image source: Getty Images.
From one business to many Robinhood originally built its business around stock trading. But it didn't stop there. It kept adding products. Options became an important revenue stream. Crypto followed. Robinhood added margin lending, cash products, Gold membership subscriptions, securities lending, prediction markets, credit cards, etc. Each product gave Robinhood another way to make money from its customers.
That's an important strategy. A traditional broker might make money when a customer trades. Robinhood increasingly has opportunities to make money, whether that customer is trading, holding cash, paying for a subscription, using a card, borrowing against securities, or participating in other financial products.
The company doesn't need every product to become enormous. It needs enough of them to become meaningful. So far, that's happening.
HOOD Robinhood Markets$95.07-$1.51 (-1.56%)
NASDAQ · As of 4:00 PM ET 10/23/26
The customer matters more than the product This is where Robinhood's strategy is particularly important.
Imagine someone opens a Robinhood account to buy a few stocks. That customer might initially generate very little revenue. But over time, Robinhood can offer more products. The customer could subscribe to its Gold membership. Move more cash onto the platform. Trade options. Use the Gold Card. Buy crypto. Participate in prediction markets, and more. The customer doesn't need to find another financial company for each activity.
As for Robinhood, it can continue to expand the relationship, generating more revenue over time. Better still, it doesn't have to spend on customer acquisition costs, making growth highly efficient over time.
A few numbers show how customers are becoming more valuable. Robinhood ended the second quarter with 28.4 million funded customers, up 7% from a year earlier. Gold subscribers reached 4.8 million, up 39%, while average revenue per user increased 24% to $187.
That's an interesting combination. More customers. More products. More revenue per customer. If Robinhood can keep all three growing, the business could compound in ways that a simple trading platform cannot.
Diversification matters Another benefit of this strategy is that it reduces the volatility of Robinhood's traditional trading products. The idea is simple. Trading activity can be unpredictable. When markets become active, customers tend to trade more. When markets become quiet, transaction activity can slow.
Robinhood has gradually built other revenue streams that don't depend entirely on customers buying and selling stocks. In the second quarter, transaction-based revenue rose 44% year over year to $776 million. But Robinhood also generated $389 million of net interest revenue and $143 million of other revenue.
That mix gives the company more than one engine. If one product slows, another can potentially offset some of the weakness. That's especially valuable for a company whose original business depends heavily on market activity.
There's a catch that investors should understand, though. When Robinhood says a business has more than $100 million in annualized revenue, it doesn't mean the business generated $100 million in the past year. Robinhood calculates the figure by taking the relevant quarter's revenue and multiplying it by four. So, investors shouldn't treat the 13 businesses as 13 mature $100 million companies.
But the milestone still matters. It shows that Robinhood has created multiple products capable of reaching meaningful scale. Besides, the speed at which the company is building these products is remarkable, considering that it only had one $100 million product (options trading) in 2019.
What does it mean for investors? Robinhood has been in an expansion mode over the last few years, thanks to its strategy of building products that customers want to use. If it can continue to build products that customers want, the company could create a powerful flywheel: More customers give Robinhood a larger audience. More products give it more ways to monetize that audience.
Higher revenue gives Robinhood more resources to invest in new products. Successful products, in turn, make the platform more valuable to customers. That's how it can gradually become something much bigger.
In other words, the 13-business milestone doesn't prove Robinhood will become a great long-term compounder. But it gives investors an important clue on how the company is evolving, and that its long-term growth strategy is already gaining traction.
Cryptocurrencies and blockchain technology are reshaping financial infrastructure. Their applications extend beyond trading to digital-dollar payments, tokenized securities, credit distribution and automated settlement, potentially reducing friction in transactions traditionally handled by intermediaries.
Among others, Robinhood Markets, Inc. (HOOD - Free Report) , Circle Internet Group, Inc. (CRCL - Free Report) and Figure Technology Solutions, Inc. (FIGR - Free Report) offer distinct exposure to this transition through digital-asset investment platforms, stablecoin networks and blockchain-powered lending markets, respectively.
Institutional interest continues to support the industry's long-term potential. The 2026 Coinbase and EY-Parthenon survey of 351 institutional investors found that 86% of respondents were either using or interested in stablecoins. Meanwhile, 73% of respondents planned to increase digital-asset allocations, while 67% prioritized tokenization capabilities over the next two years. These findings suggest that institutions are increasingly looking beyond cryptocurrency investment toward the practical applications of blockchain technology.
Regulatory developments are also helping establish a clearer operating environment. On Oct. 21, 2026, the Office of the Comptroller of the Currency finalized rules implementing the GENIUS Act, covering reserve requirements, redemption, risk management and supervision of payment stablecoin issuers under its jurisdiction. The regulations will become effective on Jan. 18, 2027. Greater regulatory clarity could encourage financial institutions to expand their use of stablecoins.
For investors, lasting value will depend less on speculative trading cycles than on businesses that develop distribution advantages, attract institutional liquidity and earn fees from everyday financial workflows, though competition, cyber risks and regulatory costs remain meaningful hurdles.
If you’re looking to tap into this fast-growing trend, our Cryptocurrencies & Blockchain Thematic Screen offers a simple way to spot promising stocks in the sector. Designed with advanced analytics, the screen is an invaluable source for identifying crypto and blockchain stocks with massive growth prospects.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 Crypto & Blockchain Stocks to Watch Right NowRobinhood Markets is developing a broader digital-asset business by combining cryptocurrency trading, blockchain infrastructure and tokenized investments with its established brokerage platform. Its acquisition of Bitstamp expanded access to global cryptocurrency markets, while its growing customer base offers a distribution channel for new financial products.
A major step in its blockchain strategy came on July 1, 2026, with the public mainnet launch of Robinhood Chain, an Ethereum Layer 2 network built using Arbitrum technology. The company also introduced stock tokens through Robinhood Wallet for eligible users in more than 120 countries, subject to local availability. The offerings extend Robinhood's services into decentralized finance and tokenized securities, creating potential new sources of customer engagement.
International expansion provides further opportunities. Recently, Robinhood announced authorization from the Dubai Financial Services Authority to introduce its retail investment platform from the Dubai International Financial Centre. The company plans a 2027 launch, with its permitted offerings including cryptocurrencies and investment tokens. Its earlier acquisition of WonderFi deepens Robinhood's Canadian crypto presence. These broaden its digital-asset reach.
Robinhood currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Circle Internet Group offers exposure to the growing use of stablecoins in financial transactions. Its USDC stablecoin supports digital-asset trading, payments and settlement activities, while its infrastructure enables businesses to incorporate blockchain-based money transfers into existing operations. The company's ability to expand USDC distribution and develop additional payment applications supports long-term growth.
Arc advances Circle from stablecoin issuer toward infrastructure provider. Launched in September, the blockchain combines dollar-denominated fees, rapid finality and Circle Payments Network integration. Institutional validators and developer tools could attract payment and tokenization workflows, supporting additional platform economics.
Distribution agreements expand reach without requiring Circle to win customers individually. Binance's five-year partnership broadens USDC access, while Tereina's SAP integration brings stablecoins into corporate workflows. The proposed Tazapay acquisition could add payment corridors, subject to an anticipated 2027 closing.
Regulation strengthens the long-term thesis. Circle received approval for a national trust bank in July, potentially reinforcing institutional custody credentials as stablecoin rules mature. Wider payment applications could diversify revenues of this Zacks Rank #1 company and strengthen shareholder returns.
Figure Technology Solutions is building its presence in capital markets by applying blockchain technology to consumer lending and asset financing. Through Figure Connect, the company facilitates transactions between loan originators and institutional investors, while its on-chain lending platform, Democratized Prime, provides an additional funding mechanism.
Growth in marketplace participation could increase transaction volumes and create opportunities across different lending categories. Figure’s blockchain-based lending ecosystem has facilitated approximately $30 billion in cumulative home-equity loan originations, with more than 489 partners leveraging its technology to access lending and capital markets. Preliminary third-quarter marketplace volume exceeded $5.1 billion, up 107% annually, validating repeatable loan distribution.
Democratized Prime deepens this model by offering lenders blockchain-based financing between origination and sale. Matched offers reached $588 million at September-end, up 50% sequentially. Connecting funding with secondary-market liquidity could significantly improve capital velocity and reinforce marketplace participation.
YLDS adds a tokenized, yield-bearing security to Figure's asset platform. Circulation stood at $504 million in September. Greater adoption could improve collateral and on-chain settlement flexibility.
This Zacks Rank #1 company is also expanding into adjacent lending categories. The company completed its acquisition of Kiavi in September, strengthening its presence in residential real estate financing. Its small-business financing ecosystem funded $135 million during the third quarter, including more than $50 million in September, with annualized funding volume exceeding $500 million. These developments could broaden the range of assets traded and financed through Figure's blockchain marketplace.
Carnegie Investment Counsel raised its holdings in Robinhood Markets, Inc. (NASDAQ: HOOD) by 81.3% in the undefined quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 16,956 shares of the company's stock after purchasing an additional 7,604 shares during the quarter. Carnegie Investment Counsel's holdings
Robinhood's crypto revenue has been sliding for three straight quarters, but a surge in trading activity toward the end of Q3 hints that a turnaround may be closer than analysts expected. The question is whether it will be enough to…
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In Q2 2026, Robinhood’s (NASDAQ:HOOD | HOOD Price Prediction) crypto revenue fell 38% year over year to $100 million. This marks the company’s third consecutive quarter of decline. Robinhood is projected to release its third-quarter results after the market closes on October 27, though the exact date is not yet confirmed.
Despite the downturn, crypto trading activity picked up in August and September. Did this increase help reverse the decline in Robinhood’s crypto revenue?
Robinhood’s Crypto Revenue Fell While Equities and Event Contracts Grew
Crypto revenue accounted for just 7.6% of Robinhood’s $1.31 billion in total revenue in Q2. A year prior, crypto played a much larger role in the company’s earnings. In Q3 2025, crypto revenue soared over 300% to $268 million, accounting for 21% of total sales.
Robinhood’s crypto revenue depends on trading activity and cryptocurrency prices, as the company primarily earns from customer trades. After the crypto boom peaked, crypto revenue fell to $221 million in Q4 2025, $134 million in Q1, and $100 million in Q2.
However, other business segments continued to expand. In Q2, revenue from equities surged by 95%, and event contracts—financial products tied to specific events—generated $156 million, surpassing the company’s crypto earnings for the same quarter.
Analysts Expect Higher Q3 Revenue but Lower Earnings Per Share
Analysts are optimistic about Q3, predicting earnings per share (EPS) of $0.54, up from $0.46 three months ago. They anticipate total revenue to reach around $1.41 billion.
Metric
Consensus
Year Ago
YoY Change
Q3 2026 EPS
$0.54
$0.61
Down 11.0%
Q3 2026 Revenue
$1.41 billion
$1.27 billion
Up 11.0%
FY2026 EPS
$2.15
$2.05
Up 4.9%
FY2026 Revenue
$5.28 billion
$4.47 billion
Up 18.1%
Of the 29 analysts covering the stock, 6 recommend a strong buy, 18 a buy, 3 a hold, 1 a sell, and 1 a strong sell. Their average price target of $135 is roughly 38% above the stock’s premarket price.
Even with this optimism, Robinhood’s shares have struggled. The stock is trading around $98 premarket, down 4.1%, and has lost 20.7% over the past month amid a broader tech sell-off.
Additionally, CEO Vlad Tenev sold approximately $72.8 million in stock on September 22 and October 5. However, these sales followed a scheduled Rule 10b5-1 trading plan established on September 5, 2025, as indicated in his Form 4 filings.
Robinhood’s Crypto Trading Picked Up After a Slow Start to Q3
During the July 29 earnings call, management expressed caution about the crypto segment. Chief Financial Officer Shiv Verma noted that crypto was “probably a little slower than Q2 so far,” while trading volumes in equities, options, and event contracts remained steady compared to Q2.
However, crypto trading rebounded as the quarter progressed. August saw crypto trading volume rise 61% to $17.5 billion, with late-September trading running 25% above the August average. Analysts at BTIG reported that September’s figures point to a generally strong Q3.
That said, even a strong finish may not turn the tide significantly. Robinhood hasn’t released complete crypto trading volume for the quarter yet, making a direct comparison with Q2 difficult. Moreover, while Bitcoin (CRYPTO:BTC) has gained 31.4% over the past 90 days, it still trades 21.8% below its price a year ago, making last year’s $268 million in crypto revenue a high bar to clear.
Event Contracts and Trump Accounts Could Shape Robinhood’s Q3 Report
Another focal point will be event contracts. Rothera, Robinhood’s exchange for event contracts, has quickly become one of the top three U.S.-designated contract markets, federally regulated exchanges for futures and event contracts.
Additionally, the launch of Trump Accounts—investment accounts for children—on July 4 has attracted over 7 million sign-ups and nearly $1.5 billion in deposits. The Q3 report will likely show how much these accounts contribute to Robinhood’s new-customer deposits.
Competitors are also chasing Robinhood’s customers. For instance, Interactive Brokers lets clients stake Ethereum directly on its platform.
Can Robinhood’s Crypto Revenue Recover in Q3?
Given the strong trading volumes in August and September, Robinhood’s crypto revenue could exceed Q2’s $100 million. However, surpassing last year’s $268 million figure seems unlikely while Bitcoin remains over 21% below its value from a year ago. Since crypto accounted for only 7.6% of total sales in Q2, performance in options, equities, event contracts, and interest income may better reflect the quarter’s overall results.
Ultimately, even if crypto revenue rebounds, it may not significantly affect the stock price. Historically, Robinhood shares have fallen on earnings day after each of the last four reports, even though three of those reports beat estimates. Thus, a successful Q3 might not drive gains unless management provides positive updates on October trading activity, a crucial month when Bitcoin began to show volatility.
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Wall Street analysts forecast that Robinhood Markets, Inc. (HOOD - Free Report) will report quarterly earnings of $0.55 per share in its upcoming release, pointing to a year-over-year decline of 9.8%. It is anticipated that revenues will amount to $1.42 billion, exhibiting an increase of 11.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Robinhood Markets metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Revenues- Other revenues' should come in at $128.79 million. The estimate suggests a change of +46.4% year over year.
The combined assessment of analysts suggests that 'Revenues- Net interest revenues' will likely reach $441.02 million. The estimate indicates a change of -3.3% from the prior-year quarter.
It is projected by analysts that the 'Revenues- Transaction-based revenues' will reach $847.75 million. The estimate indicates a year-over-year change of +16.1%.
The collective assessment of analysts points to an estimated 'Revenues- Transaction-based- Other' of $45.79 million. The estimate points to a change of -36.4% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- Net interest revenues- Securities lending, net' reaching $13.18 million. The estimate indicates a change of -84.9% from the prior-year quarter.
Analysts predict that the 'Revenues- Net interest revenues- Interest on segregated cash, securities, and deposits' will reach $64.75 million. The estimate suggests a change of -37.1% year over year.
Analysts expect 'Revenues- Transaction-based- Cryptocurrencies' to come in at $135.64 million. The estimate suggests a change of -49.4% year over year.
Based on the collective assessment of analysts, 'Revenues- Transaction-based- Equities' should arrive at $120.34 million. The estimate suggests a change of +39.9% year over year.
The consensus among analysts is that 'Revenues- Transaction-based- Options' will reach $364.11 million. The estimate suggests a change of +19.8% year over year.
The average prediction of analysts places 'Revenues- Net interest revenues- Margin interest' at $240.20 million. The estimate indicates a change of +57% from the prior-year quarter.
The consensus estimate for 'Funded Customers' stands at 28.21 million. The estimate compares to the year-ago value of 26.80 million.
Analysts forecast 'Total Platform Assets - Total' to reach $385.68 billion. Compared to the present estimate, the company reported $332.70 billion in the same quarter last year.
View all Key Company Metrics for Robinhood Markets here>>>
Over the past month, Robinhood Markets shares have recorded returns of -16.9% versus the Zacks S&P 500 composite's no change. Based on its Zacks Rank #1 (Strong Buy), HOOD will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Robinhood Markets shares HOOD rose on Wednesday as analysts assessed the trading platform's expansion beyond its traditional brokerage business, with new financial products and prediction markets emerging as potential growth drivers. The stock gained around 4.34% to $102.47 in trading.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
As digital assets and retail trading converge, investors must decide which gateway offers better long-term potential. Choosing between Coinbase Global (COIN +1.43%) and Robinhood Markets (HOOD +1.75%) depends on your appetite for crypto.
Coinbase serves as a pure-play infrastructure giant for the onchain economy, while Robinhood operates a broader financial supermarket for various asset classes. They target similar retail demographics but rely on very different revenue models. Understanding how each company manages its balance sheet and regulatory hurdles is key to deciding which stock fits your 2026 portfolio.
The case for Coinbase GlobalCoinbase Global provides a platform for trading various digital assets, serving consumers, institutions, and developers across more than 100 countries. The company is a prominent name among fintech stocks and generates most of its revenue from transaction fees, particularly from Bitcoin (BTC +2.14%) and Ethereum (ETH +2.55%) trading pairs. Its reliance on stablecoin revenue through a partnership with Circle Internet Group(CRCL +5.53%) adds a layer of customer concentration risk to the business.
In its latest annual report for FY 2025, revenue reached nearly $7.2 billion, representing an increase of about 9.4% over the prior year. The company reported a net income of roughly $1.3 billion, which equates to a net margin of 17.6%. This performance reflects the company's ability to remain profitable despite a downturn in the digital asset market in Q4 2025.
As of its December 2025 balance sheet, the debt-to-equity ratio is 0.5x, reflecting total debt relative to what shareholders own. Furthermore, its current ratio of 2.3x indicates the company can cover its short-term obligations using its current assets. It is worth noting that stock-based compensation (SBC) represented roughly 34.9% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Robinhood MarketsRobinhood Markets provides a multi-asset platform for retail investors, offering stocks, options, and crypto trading along with digital banking services. The company derives its transaction-based revenue primarily from routing customer orders to third-party liquidity providers. Its August 2026 metrics show a growing base of 28.6 million funded customers and nearly 4.8 million subscribers for its premium service, Robinhood Gold.
In its latest annual report for FY 2025, revenue reached close to $4.5 billion, a 51.6% increase from the previous year. This growth helped the company achieve a net income of approximately $1.9 billion, resulting in a net margin of 42.1%. These figures highlight a significant expansion in the company's financial performance compared to earlier fiscal periods.
As of December 2025, Robinhood reported a debt-to-equity ratio of 1.3x, meaning the company carried $1.30 in debt for every dollar of shareholder equity. While this indicates some reliance on debt financing, Robinhood also generated nearly $1.6 billion in free cash flow, representing the cash remaining after operating expenses and capital investments. This provides the company with greater financial flexibility to reinvest in its business, pursue growth opportunities, and manage its financial obligations.
Risk profile comparisonCoinbase Global faces significant risks related to the highly volatile nature of crypto assets, which directly impacts its trading volume and revenue. The company operates in an uncertain regulatory landscape and is currently defending litigation regarding its product classifications in several states. It also contends with intense competition from decentralized protocols and constant cybersecurity threats aimed at customer accounts.
Robinhood Markets deals with similar regulatory challenges with its cryptocurrency offerings and is also defending class action lawsuits that claim its prediction markets function as illegal gambling platforms. It also is facing credit risk from margin lending and competition from traditional institutions such as Wells Fargo (WFC +0.49%).
Valuation comparisonRobinhood appears cheaper based on future earnings estimates, while Coinbase offers a lower multiple relative to its trailing sales. The P/S ratio measures market cap divided by sales over the past twelve months, while the Forward P/E compares price to future earnings estimates.
MetricCoinbase GlobalRobinhood MarketsForward P/E57.1x43.9xP/S ratio7.1x17.6xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?When deciding between Coinbase and Robinhood, investors have to weigh two very different approaches to capitalizing on the growth of digital assets and financial technology.
Coinbase offers more direct exposure to the nascent but growing crypto economy. However, its dependence on crypto trading volumes leaves it vulnerable to the industry's notorious boom-and-bust cycles. Simply put, if crypto is in a bear market, Coinbase is likely to struggle.
Even though Robinhood is expanding its crypto offerings it has built a more diversified business spanning stocks, options, and prediction markets. That diversification provides multiple avenues for growth without relying as heavily on the performance of any single asset class.
Valuation adds another wrinkle to the decision. Robinhood trades at a lower multiple of expected earnings, while Coinbase looks more attractive relative to its trailing revenue. Neither measure tells the whole story, but Robinhood's stronger recent revenue growth makes its valuation particularly interesting.
For long-term investors, Robinhood gets the nod. Coinbase could deliver greater upside during another crypto bull market, but Robinhood's broader business model, growing customer base, and multiple revenue streams make it the more compelling investment.
Robinhood Markets, Inc. (HOOD - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -9.8%.
Revenues are expected to be $1.42 billion, up 11.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.95% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Robinhood Markets?For Robinhood Markets, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.39%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Robinhood Markets will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Robinhood Markets would post earnings of $0.44 per share when it actually produced earnings of $0.62, delivering a surprise of +40.91%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Robinhood Markets appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
In the latest trading session, Robinhood Markets, Inc. (HOOD - Free Report) closed at $96.52, marking a -2.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.
Heading into today, shares of the company had lost 17.49% over the past month, lagging the Finance sector's loss of 1.68% and the S&P 500's gain of 1.46%.
The upcoming earnings release of Robinhood Markets, Inc. will be of great interest to investors. The company's earnings report is expected on October 27, 2026. The company is expected to report EPS of $0.55, down 9.84% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.42 billion, reflecting a 11.38% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.15 per share and a revenue of $5.29 billion, representing changes of +4.88% and +18.34%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Robinhood Markets, Inc. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. As of now, Robinhood Markets, Inc. holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Robinhood Markets, Inc. is currently being traded at a Forward P/E ratio of 45.89. This indicates a premium in contrast to its industry's Forward P/E of 13.07.
It is also worth noting that HOOD currently has a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Financial - Investment Bank industry stood at 0.9 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Robinhood Markets, Inc. (HOOD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned -5.3% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Financial - Investment Bank industry, to which Robinhood Markets belongs, has lost 8.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Robinhood Markets is expected to post earnings of $0.55 per share for the current quarter, representing a year-over-year change of -9.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The consensus earnings estimate of $2.15 for the current fiscal year indicates a year-over-year change of +4.9%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.97 indicates a change of +37.8% from what Robinhood Markets is expected to report a year ago. Over the past month, the estimate has changed +3.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Robinhood Markets is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Robinhood Markets, the consensus sales estimate of $1.42 billion for the current quarter points to a year-over-year change of +11.4%. The $5.29 billion and $6.8 billion estimates for the current and next fiscal years indicate changes of +18.3% and +28.5%, respectively.
Last Reported Results and Surprise HistoryRobinhood Markets reported revenues of $1.31 billion in the last reported quarter, representing a year-over-year change of +32.3%. EPS of $0.62 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $1.26 billion, the reported revenues represent a surprise of +3.49%. The EPS surprise was +40.91%.
Over the last four quarters, Robinhood Markets surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Robinhood Markets is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Robinhood Markets. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Investors in Robinhood Markets, Inc. (HOOD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 16, 2026 $5.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Robinhood shares, but what is the fundamental picture for the company? Currently, Robinhood is a Zacks Rank #1 (Strong Buy) in the Financial - Investment Bank industry that ranks in the Top 25% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 58 cents per share to 62 cents in that period.
Given the way analysts feel about Robinhood right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways HOOD is likely to be the first retail brokerage to offer KPI contracts tied to metrics across 23 companies.KPI contracts to expand active trading and complement HOOD's options, equities and prediction markets.Pending clearances and fee waivers through 2026 may delay monetization and limit near-term revenue growth.
Robinhood Markets, Inc. (HOOD - Free Report) is expected to gain a new revenue growth opportunity after the Securities and Exchange Commission (SEC) approved Cboe Global Markets, Inc.’s (CBOE - Free Report) proposal on Oct. 13 to list binary options tied to company-specific key performance indicators (KPIs). Robinhood will likely become the first retail brokerage to offer such contracts, potentially broadening its event-driven trading offerings and creating an additional source of transaction-based revenues.
The contracts will cover more than 100 metrics across 23 companies, including NVIDIA’s data-center revenues, Apple's iPhone revenues and Robinhood's funded-customer count. The offering would let customers trade on specific corporate performance indicators, expanding the range of event-driven products on HOOD's platform.
The proposed KPI contracts are likely to attract retail investors seeking to trade on corporate performance rather than solely on conventional asset-price movements. By extending its product lineup to company-specific business metrics, Robinhood is expected to expand its reach to customers interested in tracking developments across technology and other corporate sectors.
The initiative aligns with HOOD's broader strategy of expanding its active-trading ecosystem through options, futures, prediction markets and other event-driven products. Transaction-based revenues recorded a compound annual growth rate (CAGR) of 57.7% over the six years ended 2025, primarily driven by options and equities trading. The prediction markets business is also gaining traction, with cumulative volumes exceeding 45 billion contracts since launch. The addition of KPI-linked contracts is expected to provide another avenue to engage active traders and encourage activity across the platform.
If customer adoption builds, the offering will likely complement Robinhood's existing trading products and support further transaction-revenue growth. However, its contribution will depend on trading volumes, customer demand and the company's ability to monetize the contracts over time.
HOOD Faces Near-Term Regulatory and Monetization HurdlesTrading has not yet started despite the SEC's approval, as separate clearing approvals remain pending. The launch timeline and completion of the remaining operational requirements will therefore determine when Robinhood can begin offering the contracts.
Additionally, Robinhood and Cboe plan to waive fees through the end of 2026, limiting immediate monetization. Although the fee waiver is expected to encourage initial participation, the offering's longer-term revenue contribution will depend on sustained trading activity and customers' willingness to continue trading once fees are introduced.
Regulatory uncertainty presents another consideration. Robinhood's expansion into prediction markets has already exposed the business to state-level challenges over whether certain event contracts should be treated as gambling or federally regulated derivatives. Although the newly approved KPI contracts are distinct from sports-event contracts, broader scrutiny of event-driven products could increase compliance requirements or complicate future expansion.
Our Take on HOOD’s New Revenue Growth SourceThe SEC's approval provides Robinhood with another opportunity to broaden its active-trading ecosystem and diversify transaction-based revenue. Given the company's existing momentum in options, equities and prediction markets, KPI-linked contracts are likely to complement its product expansion strategy and attract customers interested in trading on corporate performance.
However, the opportunity remains at an early stage, with trading yet to begin. Regulatory developments and customer adoption will also influence the product's commercial potential. HOOD's ability to turn this into a meaningful growth driver will depend on a successful launch, sustained trading volumes and monetization after the promotional period ends.
Over the past year, shares of Robinhood have declined 24.6% against the industry’s 7.3% gain.
One-Year Performance
Image Source: Zacks Investment Research
Robinhood sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Similar Expansion Efforts by Robinhood’s PeersCoinbase Global (COIN - Free Report) is expanding its stablecoin and trading businesses through strategic partnerships. On Oct. 8, the company announced a partnership with Samsung to integrate USDC into Samsung Wallet for U.S. users, with launch expected in late October. Coinbase will provide custody infrastructure through Coinbase Prime, alongside licensed infrastructure partner Bastion.
The deal will likely boost USDC adoption through digital payments and cross-border transfers, supporting stablecoin-related revenues through Coinbase's agreement with Circle and creating additional custody and payments opportunities. Coinbase is also extending stablecoin infrastructure to community banks and credit unions through its Moov partnership and expanding its international trading business through regulated derivatives in Canada.
Interactive Brokers Group (IBKR - Free Report) continues to expand its multi-asset trading platform through product innovation, AI integration and broader market access. In May, the company introduced a unified prediction-markets interface, expanded its cryptocurrency offerings and enabled stablecoin transfers to external wallets. It has also integrated AI tools, including Claude, ChatGPT and Grok, to enhance investment research and portfolio analysis.
These initiatives are expected to strengthen client engagement, attract new accounts and increase trading activity, supporting commission-based revenues and interest income from client balances. Expanded cryptocurrency, stablecoin and prediction-market offerings will diversify Interactive Brokers’ revenue growth opportunities, while AI-powered tools may improve client retention and platform usage.
Robinhood Markets Inc. (NASDAQ:HOOD) shares are under pressure Wednesday amid negative analyst views on the stock, hotter-than-expected core inflation that bolstered the case for more Federal Reserve tightening, and third-quarter results from Bank of America and Morgan Stanley that dented confidence in the broader sector.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Robinhood Markets, Inc. (HOOD - Free Report) .
Robinhood Markets currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.50 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 21 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.4% and 10.3% of all recommendations.
Brokerage Recommendation Trends for HOOD
Check price target & stock forecast for Robinhood Markets here>>>
The ABR suggests buying Robinhood Markets, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HOOD a Good Investment?In terms of earnings estimate revisions for Robinhood Markets, the Zacks Consensus Estimate for the current year has increased 2.2% over the past month to $2.16.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Robinhood Markets. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Robinhood Markets may serve as a useful guide for investors.
Robinhood stock has dropped sharply while a key rival surged 31% and the broader market climbed, pointing to a problem that sits squarely with the company itself. Whether that weakness signals a time to cut losses or hold steady depends…
Robinhood Markets (NASDAQ:HOOD | HOOD Price Prediction) stock is down 11% in 2026 at $100.96, after sliding 9% today in a brutal session. For investors weighing a sale, the evidence points to a problem specific to Robinhood. When all is said and done, you might choose to conduct a measured review of your HOOD stock position instead of a full exit.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 13% in 2026, so the drop in Robinhood stock has come while the broad market climbed. Financial stocks as a group have barely moved, with the Financial Select Sector SPDR ETF (NYSEARCA:XLF) up 0.3% year to date. That context makes it hard to blame the slide in Robinhood shares on the market at large.
Meanwhile, Interactive Brokers Group (NASDAQ:IBKR) stock is up 31% in 2026, a gain that leaves Robinhood stock trailing a major brokerage rival by a wide distance. Notably, Webull (NASDAQ:BULL) stock is down 24% year to date, a larger drop than the one weighing on Robinhood shares. Taken together, those peer moves leave Robinhood stock trailing its most established rival while holding up better than its newest one.
Weekend Trading Push Raises the Stakes Robinhood said on October 1 that it will allow 24-hour weekend trading of U.S. stocks, Reuters reported, extending access as the brokerage industry moves toward longer market hours. That change lets Robinhood’s retail customers react to news that lands while traditional exchanges sit closed. Because Robinhood earns from transaction-based revenue, interest and subscriptions, added hours of access can feed the first of those streams most directly.
Interactive Brokers serves active and professional traders, working at lower margins on far larger volumes. Webull is a smaller, newer entrant competing for the same retail accounts that Robinhood courts. Between them sits Robinhood, earning from a broad retail customer base through transactions, interest and subscriptions.
Each platform sells market access, yet their share prices have split widely in 2026. A 31% gain in Interactive Brokers stock, set against an 11% loss in Robinhood shares, shows the brokerage group hasn’t declined as a whole. Down 24%, Webull stock trails both larger rivals.
That spread points to pressure specific to Robinhood. Dependence on retail activity can leave a platform more exposed to swings in customer enthusiasm.
Sector funds add little to this comparison. Led by the largest banks, card networks and insurers, the Financial Select Sector SPDR ETF gives brokerages a secondary role and holds no Webull at all. Its 0.3% gain serves as a backdrop for the financial sector and carries no read on Robinhood.
Robinhood’s Gap Is Its Own to Close Robinhood’s bull case rests on breadth, with revenue drawn from transactions, interest and subscriptions across a large retail base, and weekend access gives those customers more hours to use the platform, which can deepen engagement over time. Yet, Robinhood shares are down 11% in a year when the SPY ETF and Interactive Brokers stock have both climbed, and that gap forms the bear case.
Robinhood’s challenge now is whether weekend trading brings in enough incremental revenue to close that gap. A clear lift in customer activity could narrow the distance with Interactive Brokers, while a flat response would leave the weakness in place. For investors holding Robinhood stock, keeping their position size modest leaves room for further swings (we wrote a whole free guide on sizing speculative positions with rules that hold up, here).
Company-specific weakness can support a measured review of their stake rather than a sale. Broader damage across brokerages would strengthen the case for an exit, and gains in Interactive Brokers stock and the SPY ETF could argue against that reading.
Contact [email protected] for any questions or corrections.
The way people pay, invest, and manage money is changing fast. Robinhood's Vice President of Product Managemen Abhishek Fatehpuria discusses how the company has grown from a trading app into a platform spanning investing, banking, credit, crypto, and prediction markets, and what it takes to build trusted financial products at massive scale.
Key Takeaways HOOD emerges as a long-term growth pick, while SNEX offers a cheaper valuation and diversified exposure.HOOD's expanding product lineup and customer assets aid growth, with 2027 earnings projected to rise 37.1%.StoneX trades at 2.56X book value versus Robinhood's 10.42X, with shares up 42.5% year to date.
Robinhood Markets (HOOD - Free Report) and StoneX Group (SNEX - Free Report) operate in the financial services and brokerage industry, offering trading, execution and access to global financial markets. However, their distinct business models create different growth opportunities and risk exposures.
Robinhood primarily caters to retail investors through its digital brokerage platform, generating revenues from transaction-based activities, net interest income and subscription services. In contrast, StoneX serves institutional, commercial and retail clients through its diversified trading, clearing, execution and risk-management solutions.
The operating backdrop remains favorable for both companies, supported by active financial markets, growing client assets and expanding investor participation. Elevated market volatility can boost trading volumes and transaction-based revenues for HOOD. For SNEX, volatility and economic uncertainty can stimulate client hedging and risk-management demand, offering a relatively diversified revenue base. However, fluctuating interest rates, competitive pressures and regulatory uncertainties remain key challenges.
Against this backdrop, let's assess which stock offers a more compelling investment opportunity, considering their growth prospects, earnings resilience and valuation.
The Case for RobinhoodRobinhood continues to diversify beyond commission-free brokerage services, expanding into cryptocurrency, prediction markets, banking and wealth management. Its digital-first platform primarily serves retail investors and generates revenue from transaction-based activities, net interest income and subscription services.
Robinhood's expansion strategy focuses on deepening customer engagement and diversifying revenue streams. Initiatives spanning Robinhood Banking, Gold subscriptions, credit cards, private-market investments and international cryptocurrency services are expected to strengthen customer retention. Its Robinhood Chain initiative and prediction-markets platform provide additional growth opportunities.
However, Robinhood faces risks from volatile cryptocurrency trading, fluctuating interest rates and dependence on retail investor sentiment. Regulatory scrutiny surrounding prediction markets and payment for order flow, along with rising compliance costs, could also pressure profitability. Nevertheless, expanding revenue streams, growing customer assets and continued product innovation position HOOD for sustained growth, provided trading activity remains healthy and regulatory challenges stay manageable.
The Case for StoneXStoneX operates a diversified financial services platform, providing trading, clearing, execution, risk-management and payment solutions to institutional, commercial and retail clients. Its revenues are driven by transaction volumes, commissions, trading spreads and interest income across multiple asset classes.
StoneX continues to expand its global presence through strategic acquisitions and product diversification. The integration of R.J. O’Brien has strengthened its derivatives and clearing capabilities, positioning it as the largest non-bank futures commission merchant. The company targets $50 million in annualized cost synergies by fiscal 2027. Impending acquisitions of Banco Travelex and Integra Trading are expected to expand its payments and commodities businesses, respectively.
However, declining retail trading activity, fluctuating interest rates and rising operating expenses pose near-term challenges. Integration costs, regulatory complexities and exposure to commodity market volatility could also pressure profitability. Yet, StoneX’s diversified revenue streams, expanding global footprint and acquisition-driven synergies position it for sustained long-term growth.
HOOD & SNEX: Valuation & Growth ProspectsIn terms of valuation, StoneX has the clearest edge. SNEX is currently trading at a 12-month trailing price-to-book (P/B) of 2.56X, substantially below HOOD’s 10.42X.
Image Source: Zacks Investment Research
HOOD’s premium valuation leaves limited room for operational setbacks. A decline in trading volumes, subdued cryptocurrency activity, lower interest income or slower adoption of new products could weigh on its performance. Additionally, regulatory uncertainties surrounding payment for order flow, cryptocurrency services and event contracts remain a key concern.
In contrast, StoneX faces risks related to credit, counterparty exposure, liquidity and market volatility. Its acquisition-led expansion strategy also presents integration challenges, while rising operating costs could pressure profitability.
Nevertheless, Robinhood’s higher valuation reflects its broader retail market opportunity and scalable technology-driven business model. Strong deposit growth, an expanding product portfolio and robust customer engagement position the company to diversify revenues beyond traditional brokerage services and support long-term growth.
Analysts seem to share this view. Over the past month, the Zacks Consensus Estimate for HOOD’s earnings has been revised upward to $2.14 and $2.94 for 2026 and 2027, respectively. This suggests year-over-year earnings growth of 4.4% for 2026 and 37.1% for 2027.
Image Source: Zacks Investment Research
SNEX’s earnings estimates have remained unchanged over the past 30 days at $4.35 for fiscal 2026 and $4.45 for fiscal 2027. This reflects earnings growth of 66% and 2.3% for fiscal 2026 and fiscal 2027, respectively.
Image Source: Zacks Investment Research
Robinhood or StoneX: Which One is a Better Buy?So far this year, shares of Robinhood have lost 2.3%, while the StoneX stock has jumped 42.5%. Hence, in terms of investor sentiment, SNEX has the edge.
Image Source: Zacks Investment Research
StoneX remains an attractive investment option, supported by its diversified business model, strong institutional presence and relatively inexpensive valuation. Investors seeking value and relatively stable exposure to global trading, clearing and risk-management activities may find SNEX appealing.
However, Robinhood appears better-positioned for long-term growth. Rapid growth in customer assets and deposits, rising Gold subscriptions and record margin and retirement balances underscore its strong business momentum. Moreover, expansion into banking, advisory services, credit cards, prediction markets and international cryptocurrency offerings is expected to diversify revenue streams and create additional growth opportunities.
Although HOOD’s premium valuation, regulatory uncertainties and sensitivity to trading activity pose risks, its expanding customer base, continued product innovation and scalable business model offer significant growth potential. The company’s ability to deepen customer relationships and capture a larger share of their financial activities further strengthens its prospects.
Thus, while StoneX offers greater valuation comfort and diversified market exposure, Robinhood appears to be the more compelling investment choice for investors seeking higher long-term growth, while willing to withstand near-term volatility.
At present, HOOD sports a Zacks Rank #1 (Strong Buy), while StoneX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets, Inc. (HOOD - Free Report) closed at $110.52 in the latest trading session, marking a +1.19% move from the prior day. This move outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.15%.
Heading into today, shares of the company had lost 4.47% over the past month, lagging the Finance sector's loss of 3.34% and the S&P 500's gain of 2.05%.
The investment community will be closely monitoring the performance of Robinhood Markets, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2026. The company is predicted to post an EPS of $0.55, indicating a 9.84% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.42 billion, indicating a 11.71% increase compared to the same quarter of the previous year.
HOOD's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $5.31 billion. These results would represent year-over-year changes of +4.39% and +18.6%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Robinhood Markets, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.42% higher within the past month. Robinhood Markets, Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Robinhood Markets, Inc. has a Forward P/E ratio of 51.01 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.22.
Meanwhile, HOOD's PEG ratio is currently 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 0.89.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
An updated edition of the August 25, 2026, article.
Financial technology, or fintech, is rapidly transforming the global financial services landscape by making financial solutions more accessible, efficient and customer-centric. The integration of artificial intelligence (AI), blockchain, Big Data and cloud computing is reshaping traditional banking, payments, lending, wealth management and investment services.
Digital wallets, mobile banking, instant payment networks and embedded finance are expanding financial inclusion and enabling seamless transactions. Meanwhile, buy now, pay later solutions, AI-powered lending platforms and automated investment services are improving convenience, affordability and access to financial products.
A major emerging trend in 2026 is the growing adoption of generative and agentic AI. Financial institutions are increasingly deploying AI-powered tools to automate customer interactions, personalize financial recommendations, strengthen credit underwriting and enhance operational efficiency. Agentic AI is also creating opportunities for autonomous financial transactions and intelligent payment processing.
Concurrently, stablecoins, tokenized assets and blockchain-based payment infrastructure are gaining traction, offering opportunities for faster cross-border settlements, improved liquidity management and lower transaction costs. Real-time payments and embedded financial services are further accelerating digital transformation.
However, increasing regulatory scrutiny, cybersecurity threats, data privacy concerns and intense competition remain challenges. Nevertheless, continued technological innovation, expanding digital adoption and strategic collaborations between fintech companies and traditional financial institutions are expected to support the sector's long-term growth prospects. Hence, stocks like Robinhood Markets, Inc. (HOOD - Free Report) , Block, Inc. (XYZ - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) are attracting investor attention.
Our Fintech Screen will help you identify the right stocks now to ride on the wave of this trillion-dollar revolution. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
Robinhood is leveraging advanced technology, AI and blockchain infrastructure to strengthen its digital financial services ecosystem, enhance customer engagement and diversify revenue streams. Its mobile-first trading platform uses automation, real-time market data and advanced analytics to provide seamless access to equities, options, cryptocurrencies and other financial products.
The company is increasingly integrating AI into its operations and customer-facing services. Its AI-powered investment assistant, Robinhood Cortex, provides market insights, portfolio analysis and research capabilities, while Robinhood Legend offers sophisticated trading tools and analytics. The company has also introduced agentic trading capabilities, enabling customers to execute investment strategies through AI-powered agents. These innovations are expected to improve trading efficiency, encourage greater platform engagement and attract active investors
Robinhood plans to deepen its AI capabilities through Robinhood Agents, which are designed to analyze markets, develop strategies and execute trades. It also intends to introduce weekend equities trading and expand derivatives and prediction-market offerings. Also, Robinhood is strengthening its blockchain ecosystem through Robinhood Chain, its Ethereum Layer 2 network, and expanding tokenized assets and decentralized finance solutions. Its international expansion, alongside investments in digital banking, credit cards and wealth management, supports its ambition to become a comprehensive financial services platform.
These technology-driven initiatives are expected to support customer acquisition, improve monetization opportunities and reduce dependence on conventional trading revenues, although regulatory uncertainties, cybersecurity risks and competitive pressures remain challenges. HOOD currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2026 sales and EPS implies year-over-year growth of 18.6% and 4.4%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block is leveraging AI, machine learning (ML), automation and blockchain technology to strengthen its fintech ecosystem, improve operational efficiency and enhance customer engagement. Through its Square and Cash App platforms, the company integrates advanced technologies to simplify payments, streamline business operations and expand access to financial services.
Square uses AI-powered tools, including Square AI, to help merchants analyze sales trends, manage operations and make informed business decisions. Meanwhile, Cash App leverages ML for fraud detection, risk assessment, personalized financial services and lending. Block is also integrating AI into its internal operations through its agentic AI framework, goose, to accelerate software development, automate workflows and improve productivity.
Going forward, Block plans to expand its AI-driven capabilities through Moneybot and Managerbot, designed to provide personalized financial guidance to Cash App users and actionable business insights to Square merchants. The company also intends to deepen integration between Square and Cash App through Neighborhoods, strengthening connections between consumers and merchants.
Additionally, Block is advancing its Bitcoin ecosystem through Bitkey, its self-custody wallet, and Proto, its Bitcoin mining technology business. Investments in automated commerce, digital banking, embedded lending and AI infrastructure are expected to support its long-term fintech expansion.
These initiatives are expected to enhance customer retention, diversify revenue opportunities and improve operating leverage, enabling this Zacks Rank #3 (Hold) company to capitalize on growing demand for integrated, technology-enabled financial solutions. The Zacks Consensus Estimate for XYZ’s 2026 sales and EPS implies a year-over-year increase of 7.7% and 71.3%, respectively.
Upstart is leveraging AI, ML and advanced data analytics to transform traditional lending, improve credit accessibility and enhance operational efficiency. Its proprietary AI-powered lending platform evaluates more than 2,500 variables to assess borrowers' creditworthiness, determine loan pricing and predict default risks more accurately than conventional credit-scoring methods.
The company integrates AI across loan origination, income and identity verification, fraud detection and customer acquisition. Its automated lending infrastructure enables faster credit decisions, reduces underwriting costs and improves borrower experience. In 2025, 91% of loans originated through its platform were fully automated, highlighting its technology-driven operating model.
Upstart plans to enhance its AI underwriting models, expand its lending partner network and strengthen its presence in personal loans, automotive financing, home equity lines of credit and small-dollar lending. Its Cash Line product supports its ambition to provide consumers with flexible, continuous access to credit.
Additionally, Upstart received conditional regulatory approval in July 2026 to establish Upstart Bank, which could reduce operational and funding complexities while strengthening its lending infrastructure, subject to final approvals. The company also aims to deepen institutional funding partnerships to support loan origination growth.
These initiatives should enhance underwriting efficiency, diversify revenue opportunities and support Upstart's long-term ambition of becoming a comprehensive AI-powered digital lending platform. However, credit risks, regulatory uncertainties and funding constraints remain key challenges. The Zacks Consensus Estimate for UPST’s 2026 sales and EPS implies a year-over-year jump of 36% and 26.4%, respectively. The company carries a Zacks Rank of 3.
Robinhood's CEO and Cathie Wood both dumped tens of millions in HOOD shares within days of each other, which looks alarming until you understand the two very different reasons behind each sale.
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The chief executive of Robinhood (NASDAQ:HOOD | HOOD Price Prediction), Vlad Tenev, sold 375,000 shares on October 5, 2026, for about $42.64 million. Over the next four sessions, Cathie Wood’s ARK Invest also sold shares of Robinhood, and together those headlines can look like insiders and a well-known investor leaving the stock.
The filings show that Tenev’s sale followed a schedule he set more than a year earlier, and ARK’s sales were portfolio cuts. The stock closed at $109.02 on October 9, 2026, up 1.88% in the last session of the selling. Both sellers still hold large positions, and neither sale says much about the business ahead of earnings.
What Tenev’s Form 4 Shows A Form 4 is the filing an insider must submit shortly after trading the company’s stock. Tenev’s was filed October 7. It shows he converted Class B shares, which carry extra voting power, into ordinary Class A shares. He then sold them in three blocks at a combined average of about $113.72 a share.
The sale ran under a Rule 10b5-1 plan, which is a trading schedule set in advance. He adopted it on September 5, 2025. Plans like this keep executives from timing trades around private information, and that protects shareholders too.
Tenev’s remaining stake is far larger: he still directly holds 47,419,572 Class B shares, worth about $5.17 billion. Chief Legal Officer Dan Gallagher sold 10,000 shares under his own plan and still holds 499,943.
ARK’s Four Sessions of Selling ARK sold about 63,000 shares on October 6. Sources report slightly different counts for that day. The larger sales came next: 151,903 shares through its main fund on October 7, worth about $16.6 million, and 202,825 shares on October 8, worth about $21.7 million.
Only one source reports the October 9 sale of 19,098 shares. Valued at each day’s closing price, the four sessions add up to roughly $47.5 million. When a fund cuts a position, the reasons are usually position size, the fund’s rules, and investor withdrawals. That tells you little about the company itself.
Robinhood closed at $114.11 on October 5 and fell to $107.01 by October 8. Its market value of $98.02 billion is back below $100 billion.
The stock trades about 29% below its 12-month high of $153.56. It was already down 28.49% over the past year. The selling landed in the middle of a decline that had been going on for months.
Why the Bull Case Still Holds On October 5, Bank of America raised its price target to $156 from $140 and kept its Buy rating. In the second quarter, revenue grew 32% to $1.308 billion, and the company spent $414 million buying back its own stock.
Robinhood also added $25 million of Bitcoin (CRYPTO:BTC) to its balance sheet. That’s a small amount for a company this size. But it ties part of a brokerage’s book value to a volatile asset.
What HOOD Investors Should Watch Into Earnings The selling leaves the investment case intact. One sale was mechanical, and the other was a fund manager’s choice, and neither changes how much Robinhood can earn. With the stock about 29% below its high, the share price already reflects a good deal of caution.
Third-quarter results are scheduled for October 27, 2026, though the company has not confirmed the date. Net deposits against the prior quarter’s $21.7 billion and whether crypto revenue keeps shrinking will be worth watching.
Closing below $107.01 after a weak deposit number would undercut this view. A move back above $114.11, the October 5 close, would show investors have moved past the selling.
Contact [email protected] for any questions or corrections.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Piper Sandler analyst Matthew Clark initiated coverage on American Savings Bank (NYSE:ASBH) with an Overweight rating and announced a price target of $20. American Savings Bank closed at $17.83 on Friday. See how other analysts view this stock. BTIG analyst Jeet Mukherjee initiated coverage on Quoin Pharmaceuticals Ltd – ADR (NASDAQ:QNRX) with a Buy rating and announced a price target of $14. Quoin Pharmaceuticals shares closed at $4.50 on Friday. See how other analysts view this stock. B of A Securities analyst Travis Steed initiated coverage on AxoGen, Inc (NASDAQ:AXGN) with a Buy rating and announced a price target of $52. Axogen closed at $36.13 on Friday. See how other analysts view this stock. Evercore ISI Group analyst Adam Frisch initiated coverage on Robinhood Markets Inc (NASDAQ:HOOD) with an Outperform rating and announced a price target of $130. Robinhood shares closed at $109.02 on Friday. See how other analysts view this stock. Keybanc analyst Steve Dechert initiated coverage on IDEXX Laboratories Inc (NASDAQ:IDXX) with a Sector Weight rating. IDEXX closed at $518.00 on Friday. See how other analysts view this stock. Considering buying AXGN stock? Here’s what analysts think:
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A Wall Street money manager says Bitcoin could vanish within a decade, but a prominent CNBC analyst calls this the most bullish moment for crypto in two years. Four concrete threats to Bitcoin's survival reveal just how close to the edge the world's largest cryptocurrency might be sitting.
A CEO’s stockholding can fall to zero without signaling a loss of faith in his company. Robinhood Markets, Inc. (NASDAQ:HOOD) CEO Vladimir Tenev sold $42.6 million worth of shares, leaving him with no directly held Class A stock — but the SEC filing reveals a crucial distinction between the shares he sold and the ownership he still retains.
The $42 Million SaleTenev sold 375,000 shares on Oct. 5 at a weighted-average price of approximately $113.72, according to his Form 4 filing with the Securities and Exchange Commission, filed Oct. 7. The transaction generated approximately $42.6 million.
The headline-grabbing detail is that Tenev’s directly held Class A share balance fell to zero following the sale. But the filing shows he still directly held 47.4 million Class B shares, along with 6,907 Class A shares held indirectly through a living trust.
That distinction matters because Robinhood has a dual-class share structure. Its Class B shares carry greater voting power than Class A shares, giving holders of the former more influence over corporate decisions relative to their economic ownership. Tenev’s sale therefore reduced his directly held Class A position without eliminating his broader stake in the company.
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The Fine Print Changes the StoryThe transaction also wasn’t an entirely new decision made on the day the shares were sold. Tenev’s Form 4 states that the sale was executed under a Rule 10b5-1 trading plan adopted on Sept. 5, 2025.
These plans allow corporate insiders to schedule stock transactions in advance under predetermined instructions, helping separate trading decisions from access to potentially material nonpublic information. They don’t automatically signal a bullish or bearish sale, but the timing and terms provide important context for investors interpreting insider activity.
Tenev’s latest transaction also follows earlier sales under the same plan, according to previous SEC filings. The pattern makes it more useful to examine the planned schedule and remaining holdings than to treat the latest sale as an isolated verdict on Robinhood’s prospects.
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What HOOD Investors Should WatchInsider selling can reflect diversification, liquidity needs or other personal financial considerations. Without further evidence, the transaction alone does not establish that Tenev expects Robinhood shares to fall. Equally, a prearranged plan does not make the sale irrelevant: investors can still track the pace of insider disposals and changes in executives’ ownership.
For HOOD shareholders, the more meaningful signals remain Robinhood’s trading activity, customer growth, product expansion and ability to generate revenue across market cycles. Tenev has converted a portion of his holdings into cash, but the filing does not show him abandoning his ownership position.
Investors should distinguish between a large headline number and a genuine change in an executive’s economic exposure before drawing conclusions about the stock.
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Photo courtesy: Thrive Studios ID / Shutterstock.com
Cathie Wood told investors to follow the AI agents, but her own fund's most recent SEC filings tell a more complicated story about where ARK actually placed its bets and which agent-economy names it quietly walked away from.
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Cathie Wood has a new rule of thumb for investors. “We’re probably going to be talking more and more about ‘follow the agents,'” the ARK Invest CEO said during a panel at the Houston Summit hosted by Robinhood (NASDAQ:HOOD | HOOD Price Prediction), according to CoinDesk. Our earlier pieces looked at how much of your money an agent should be able to spend and which payment rails agents will settle on. This one asks what ARK actually owns.
ARK’s quarterly SEC holdings disclosure, dated July 31, 2026, shows US-listed long equity positions. Every change below compares share counts between the April 30 and July 31 records.
Agent-Payment Names Are All in the Book, at Modest Weights Robinhood and Coinbase (NASDAQ:COIN) are the most direct listed ways to own agents that transact. Robinhood’s Agentic Trading drew nearly 100,000 accounts. Coinbase says 99%+ of agentic stablecoin transaction volumes in Q2 ran on Base.
In the ARK Innovation ETF, which had $5.56 billion in net assets, Coinbase was 4.17% of the fund, with shares rising from 1,460,978 to 1,584,886. Robinhood was 3.64%. In the ARK Fintech Innovation ETF, Robinhood was 5.36% and Coinbase 5.25%. Each one shows up in all three funds we reviewed, and none tops the mid-single figures.
Recent IPOs Got the Biggest New Positions The biggest new money went to companies that had only just gone public. SpaceX came public in a June 2026 IPO. It was 4.87% of the Innovation ETF on July 31, and did not appear in the Next Generation Internet ETF’s April records. Cerebras Systems (NASDAQ:CBRS), which serves “agentic AI flows” for customers including Block and Figma, entered the Innovation ETF at 500,719 shares, or 1.79%.
For power, the Innovation ETF held X-Energy, which went public in late April 2026, at 1.35%. Oklo, the small reactor developer with a ~14 GW customer pipeline, does not appear in any of the three records. The non-chip suppliers behind this expansion, from power to cooling to networking, are the subject of a free report we put together here.
Share counts also rose at the large-cap model builders. Meta Platforms went from 58,988 to 81,544 shares in the Next Generation Internet ETF, where Alphabet also gained shares. Tesla (NASDAQ:TSLA), which is building Robotaxi and Optimus, went from 1,653,653 to 1,740,376 shares and stayed the Innovation ETF’s largest holding at 9.74%.
AMD (NASDAQ:AMD) went the other way: shares fell from 947,960 to 465,372 in the Innovation ETF. The stock is up 197.17% year to date, and a stock that runs that hard can exceed its target weight. Taken together, ARK’s disclosed exposure to the agent economy tends toward the companies that build and power agents.
ARK Cut Robinhood Shares in All Three Funds ARK cut Robinhood shares in all three funds. It trimmed positions from 3,825,835 to 2,336,206 in the Innovation ETF, 507,712 to 433,692 in the Fintech ETF and 1,062,442 to 846,608 in the Next Generation Internet ETF. Institutions can trim for sizing and risk reasons. Robinhood posted Q2 revenue of $1.31B (+32% YoY) and EPS of $0.62 vs a $0.43 estimate.
Next Holdings Disclosure Will Show Whether ARK Acted on the Idea The next quarterly records will be the first one where the comment could show up in ARK’s holdings. Look for four things:
Share counts shifted across the three ETFs. Higher Robinhood and Coinbase positions in the Innovation, Fintech and Next Generation Internet ETFs would put the agent-payment thesis into the portfolio. Cerebras’s share count after the stock hit a post-IPO low on Nvidia pressure and a lockup expiration. Oklo appearing for the first time. Whether AMD share counts kept falling. Rising Robinhood and Coinbase share counts, alongside continued buying in compute and nuclear, would show ARK putting money behind Wood’s idea to “follow the agents.”
Contact [email protected] for any questions or corrections.
Robinhood Markets (NASDAQ:HOOD) appears poised to capitalize as Webull Corporation‘s (NASDAQ:BULL) stock struggles after a congressional report called it a security risk because of its business ties to China.
"Robinhood is proudly American, founded here to give everyday investors more access to the financial system. If you’re still on Webull, bring your portfolio home and get 3% on your transfer today," Robinhood tweeted.
The transfers covered are those made from Webull before Oct. 16, 2026. Robinhood regularly offers promotions for customers who transfer their accounts, but the 3% may be among the highest matches offered.
Robinhood’s direct targeting of Webull and its "proudly American" wording may be among its most aggressive in recent years.
"American assets should be at America’s favorite broker. We’re offering 3% on transfers from Webull today," Robinhood CEO Vlad Tenev tweeted.
Robinhood and Tenev are taking to social media to take on Webull after the House Select Committee on China found that the rival’s ownership and infrastructure were tied to the People’s Republic of China. The investigation raises concerns that U.S. customer data and deposits could be at risk.
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Can Robinhood Win?Robinhood is one of the leading U.S. brokerages, and it regularly competes with Webull among retail investors, day traders, and swing traders based on the platform’s ease of use and available tools.
Fears of China connections at Webull could push customers to look for a new platform.
Robinhood has been gaining customers away from legacy stock brokers and taking share from Webull could be another major win for the company.
Robinhood ended August with 28.6 million funded accounts, up about 120,000 from July. The company also reported $384 billion in platform assets in August, up 8% from July and up 26% year-over-year.
August saw strong equity trading for Robinhood, while options contracts were down from July but up 50% year-over-year.
Robinhood reported those figures on Sept. 10.
Any substantial gains from Webull could be communicated by Robinhood when it reports its September figures or its third-quarter financials, which are set for Oct. 27. While gains from Webull will not be factored into those numbers, Robinhood could choose to share them to excite investors.
Otherwise, investors will have to wait until Robinhood’s fourth-quarter financial results to see if the Webull report led to gains for the rival.
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Robinhood quietly bought Bitcoin for its own treasury the same morning its stock shed over $2 billion in market value, but the crypto purchase and the selloff tell completely different stories about where this company is actually heading.
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Robinhood (NASDAQ:HOOD | HOOD Price Prediction) closed at $109.51, while Wall Street’s average price target stands at $133.36, a gap of about 21.8%.
The day’s 2.22% decline left the company worth $98.46 billion. That pushed it back under the $100 billion mark it had held one session earlier at about $100.7 billion.
That same morning, a senior executive disclosed that Robinhood had bought $25 million of Bitcoin (CRYPTO:BTC) for its corporate treasury. The two events share a date, and the selloff had other causes.
The stock is down 10.32% over the past month. Even so, Barclays raised its target to $132 from $105, and Bank of America lifted its target to $156 from $140, even as shares slipped.
Prices falling while targets rise suggests one side is misreading the business, and the explanation lies in a revenue mix that depends far less on crypto than headlines suggest, and in a third-quarter report due later this month.
Three Separate Forces Pulled Robinhood Lower Bitcoin fell about 3% and traded around $83,700 that morning. That directly pressures the crypto-linked part of Robinhood’s business.
The wider hit came from a rival. A congressional select committee report called a competing broker’s China ties a national-security risk, and Webull (NASDAQ:BULL) fell 19.09% to $5.89 while Interactive Brokers (NASDAQ:IBKR) dropped 3.14%.
ARK also disclosed selling 151,903 Robinhood shares worth about $17.0 million. That added supply into a weak session.
The chief executive sold 375,000 shares earlier in the week at about $113 to $115 under a pre-scheduled selling plan adopted in September 2025. Because the timing was fixed more than a year ago, the sale provides no information about management’s outlook.
A $25 Million Treasury Buy Management Calls Small The purchase surfaced in an interview with no filing or press release. The company has disclosed neither the purchase date nor the amount of bitcoin acquired.
Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, played down the size himself: “Robinhood is a massive company at this point, with a market cap in the $100 billion range.
So the $25 million worth of bitcoin is not going to change a lot of the current trajectory of the company.” The position works as a gesture toward Robinhood’s crypto-native customers and is far too small for bitcoin’s price to move the company’s earnings.
Prediction Markets Now Outearn Crypto at Robinhood Second-quarter crypto revenue was $100 million, down 38%, out of $1.31 billion in total revenue. Prediction-market revenue reached $156 million in the same quarter.
This explains why analysts can raise targets while the stock falls. A bitcoin decline hurts one line while the other businesses now set the earnings path.
Equities revenue rose 95%, options revenue rose 29%, and Gold subscribers climbed to 4.8 million. Management said 13 businesses reached $100 million in annual recurring revenue.
Of 29 analysts covering the stock, six rate it Strong Buy, 18 Buy, three Hold, and one each Sell and Strong Sell.
Perpetual futures were announced at the Sept. 29, 2026 summit. They haven’t launched, so no target should rely on that product.
Robinhood first closed above a $100 billion market value in August 2025. Swings around that level are routine for a stock with a beta of 2.354.
At about 45 times forward earnings, the stock prices in strong growth and leaves little room for a weak quarter.
What Robinhood Investors Need to See Next Robinhood’s underlying business looks solid. The day’s decline came from bitcoin’s move, a sector scare linked to a rival, and a fund’s disclosed sale. The revenue mix supporting the targets remains solid.
The bull case depends on diversification holding. If prediction markets keep growing while equities and options provide transaction revenue, a weak crypto market becomes a minor drag.
The outlook would weaken if crypto revenue keeps shrinking while prediction-market volume stalls, because the multiple would have no new growth to justify it. Regulatory pressure on event contracts is the specific risk.
Interactive Brokers has less crypto sensitivity in its business, although it fell in the same selloff.
The test arrives with third-quarter results on Oct 27, 2026. If prediction-market revenue again tops crypto revenue, the targets look better supported, and if both lines weaken, expect the targets to start coming down.
Contact [email protected] for any questions or corrections.
Key Takeaways Robinhood could attract BULL customers amid scrutiny over the rival's alleged China-related ties.HOOD's transfer incentives, American roots and focus on data security could help attract active traders.Robinhood shares rose 56.2% in six months, while 2027 earnings are projected to grow 35.4%. Robinhood Markets, Inc. (HOOD - Free Report) could gain a competitive advantage as rival Webull Corporation (BULL - Free Report) faces heightened scrutiny over its alleged China-related ties. A bipartisan U.S. House committee has reportedly raised security concerns surrounding Webull’s ownership and technology infrastructure. Although Webull has disputed the allegations, the developments could prompt some investors to reassess their brokerage relationships, potentially creating customer acquisition opportunities for Robinhood.
HOOD has responded by promoting incentives for eligible Webull customers transferring assets to its platform. The company’s emphasis on its American roots could resonate with investors increasingly focused on data security and regulatory transparency. This strategy may help Robinhood attract active traders and younger investors, strengthening its position in the competitive retail brokerage market.
Robinhood’s expanding product portfolio could support its ability to capitalize on potential customer shifts. Its advanced trading platform, Robinhood Legend, alongside retirement products, subscription services and other financial offerings, provides opportunities to deepen customer engagement. The company’s focus on enhancing trading capabilities and broadening its financial ecosystem could also support customer retention and long-term revenue diversification.
Robinhood’s user-friendly interface, commission-free trading model and growing range of investment products remain important competitive strengths. These capabilities could make the platform an attractive alternative for Webull customers seeking a different brokerage provider.
However, Webull has challenged the allegations, and there is no confirmed evidence of significant customer migration to Robinhood. Promotional incentives may also increase acquisition costs, while intense industry competition could limit potential gains. Nevertheless, Robinhood’s expanding ecosystem and focus on active investors position it to capitalize on any sustained shifts in customer preferences.
Competitive Implications for HOOD’s PeersThe developments could also benefit Charles Schwab (SCHW - Free Report) and Interactive Brokers (IBKR - Free Report) , which compete with Robinhood in the brokerage industry. Schwab’s established wealth management franchise and comprehensive investment services could attract investors seeking a traditional brokerage platform. Meanwhile, Interactive Brokers’ advanced trading technology and global market access could appeal to more sophisticated traders.
Overall, Webull’s regulatory uncertainty presents a potential opportunity for Robinhood, Schwab and Interactive Brokers. While all three could benefit from changing customer preferences, Robinhood’s expanding trading ecosystem could strengthen its competitive standing.
HOOD’s Price Performance, Valuation & Estimate AnalysisIn the past six months, Robinhood shares have soared 56.2% compared with the industry’s 4.8% growth.
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HOOD has a 12-month trailing price-to-tangible book (P/TB) of 11.38X compared with the industry average of 3.05X.
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The Zacks Consensus Estimate for Robinhood’s 2026 and 2027 earnings implies year-over-year growth of 4.4% and 35.4%, respectively. In the past 30 days, earnings estimates for 2026 and 2027 have been revised higher to $2.14 and $2.90 per share, respectively.
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Currently, Robinhood sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cathie Wood says track where AI agents go next, but the more urgent question is what currency they carry and which companies control that rail before the volume becomes impossible to ignore.
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At the Robinhood (NASDAQ:HOOD | HOOD Price Prediction) Summit in Houston, ARK Invest CEO Cathie Wood said: “We’re probably going to be talking more and more about ‘follow the agents.'” The line extends a rule Wood has used for years: follow the developers. Engineers move toward tools that work, showing adoption before revenue appears. Wood now applies the same logic to software that takes actions for users.
Our earlier coverage examined permissions for agent spending. This piece addresses the next question: what agents pay with, and which listed companies carry that money.
Open Rails Case: Coinbase Claims an Early Lead CoinDesk reports that x402, from Coinbase, is designed to let machines pay for online services such as data or API access. Coinbase (NASDAQ:COIN) said in Q1 that 100M+ x402 payments had been processed and that 90%+ of onchain agentic commerce settled in USDC (CRYPTO:USDC). Its Q2 2026 earnings deck says Base carried 99%+ of agentic stablecoin transaction volumes.
BlackRock (NYSE:BLK) argued in a September paper that AI agents could pay for API calls, buy data from another service, or rent computing power without waiting for a person to approve each transaction. Joseph Chalom, formerly BlackRock’s head of digital assets, said: “A world full of intelligent agents means nothing if a handful of companies decide where your money can go.”
Coinbase CEO Brian Armstrong posted on X that “Grok is the leading client for agentic traders on Coinbase currently.” On the Q2 call he said, “I don’t think we have any specific numbers or forecasts to share on that at the moment.”
The core business is still struggling. Q2 revenue came in at $1.22B, down 18.5% YoY, missing expectations, and GAAP EPS of -$1.36 also missed expectations against a -$0.23 estimate. The stock is down 20.12% year to date and fell 2.75% today as cryptocurrencies sold off.
Incumbent Case: Visa and Google Already Own Checkout CoinDesk reports that Stripe, Visa, Google and OpenAI are among the companies developing ways for agents to make purchases. Incumbents start with merchant relationships, fraud systems, regulatory standing and consumer trust. New networks have to build all four.
Visa (NYSE:V) processed 71.7B transactions (+10%) in fiscal Q3, and net revenue rose 14.4% to $11.63B. CEO Ryan McInerney said Visa “continued to enhance our Visa as a Service stack, including with agentic and stablecoin capabilities.” The stock is up 7.14% this year.
Google (NASDAQ:GOOGL) builds the agents. Gemini models process 22 billion API tokens per minute, the Gemini App has 950 million monthly active users, and nearly 90% of the Fortune 100 use Gemini Enterprise. The company that builds the agent may be well placed to set its default wallet.
Portability Decides Who Keeps the Customer Chalom argues that an agent should be able to carry its identity, financial credentials and permissions between providers the way a phone number moves between carriers. Portable credentials would shift value toward neutral settlement layers. Closed systems keep it with platforms.
Which Rail Wins Agent Money First? Ultimately, the view is that incumbents win most consumer agent purchases over the next few years, and open networks win machine-to-machine micropayments, a smaller share with uncertain growth. Coinbase mentions an industry forecast that AI agentic finance agents will process $3-5T of transactions by 2030. Neither side has published dollar figures yet.
If Coinbase’s next earnings report includes a dollar figure for x402 volume or agent-driven revenue, the open-rails case has hard evidence behind it. If another quarter goes by with only market-share percentages while Visa or Google start reporting agentic transaction metrics, the incumbents are pulling ahead.
Contact [email protected] for any questions or corrections.
Key Takeaways Robinhood faces Ohio enforcement that could restrict sports-event contracts despite federal regulation.Event-contract revenues surged more than tenfold to $156 million as volumes hit a record 13.6 billion.Broader state restrictions could reduce HOOD's contract volumes and limit Rothera's revenue potential. Robinhood Markets’ (HOOD - Free Report) rapidly expanding prediction-market business is encountering a potentially meaningful regulatory hurdle as U.S. states step up efforts to treat sports-event contracts as gambling rather than federally regulated derivatives.
The Ohio Casino Control Commission has reasserted its cease-and-desist order against Robinhood Derivatives, requiring compliance by Oct. 16. The action follows the Sixth Circuit’s Sept. 25 ruling allowing Ohio to enforce its gambling laws against sports-event contracts despite the platforms’ federal commodities-law arguments. Ohio’s order is particularly significant because it covers companies not only offering such contracts but also facilitating them through futures commission merchant or designated contract market activities.
The timing matters for Robinhood. Event-contract revenues surged more than tenfold year over year to $156 million in the second quarter of 2026, exceeding revenues from both equities and cryptocurrencies, while volumes reached a record 13.6 billion contracts. Prediction markets have consequently emerged as one of the fastest-growing monetization engines.
Regulatory pressure is spreading across the industry. Ohio sent similar notices to nine other firms, including Coinbase Global (COIN - Free Report) , Gemini Space Station (GEMI - Free Report) , Polymarket, ProphetX and Webull Corporation (BULL - Free Report) . In Connecticut, ProphetX, Gemini Space Station and Webull have already exited following regulatory action, while Robinhood, Coinbase and Polymarket remain in discussions with regulators. This indicates that the industry could face a fragmented regulatory environment in which platforms remain federally regulated yet lose access to individual states. If more jurisdictions follow suit, the addressable sports-contract market and transaction volumes could gradually narrow for HOOD and its peers, including Coinbase, Gemini Space Station and Webull.
A broader state-by-state clampdown could also complicate Robinhood’s Rothera strategy. The CFTC-regulated exchange and clearinghouse, established through its joint venture with Susquehanna, began routing Robinhood event contracts in June and contributed $17 million of second-quarter event-contract revenues. Restrictions covering both exchanges and firms facilitating contracts could limit volumes and reduce the economics the company hoped to capture through vertical integration.
For HOOD, prediction markets remain an attractive diversification opportunity, but rapid growth now comes with greater regulatory uncertainty. Continued adoption could support revenue growth, while broader state enforcement could temper volumes and Rothera’s monetization potential. The evolving federal-state regulatory divide warrants monitoring when assessing HOOD’s growth outlook and valuation.
Robinhood’s Price Performance, Valuation & Estimate AnalysisOver the past six months, Robinhood shares have jumped 55.9%, outperforming the industry’s 5.5% growth.
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HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 11.64X compared with the industry average of 3.05X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 4.4%. The trend is likely to continue next year, with earnings expected to jump 35.4%. In the past 30 days, earnings estimates for 2026 and 2027 have been revised higher to $2.14 and $2.90 per share, respectively.
Image Source: Zacks Investment Research
HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Stock futures are lower this morning after the S&P 500 and Nasdaq closed at record highs yesterday; the Federal Reserve is due to release the minutes of last month's policy meeting; Constellation Brands shares are sinking after the beer and spirits maker reported results; SpaceX is reportedly looking to raise $40 billion to buy more Nvidia chips; and crypto-related stocks are falling alongside bitcoin this morning. Here's what you need to know today.
Macro investor Jordi Visser is calling an imminent Bitcoin FOMO surge, yet the buyers he is counting on keep refusing to show up. What is holding them back, and how long can Bitcoin stay above the level he says confirms…
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Macro investor Jordi Visser shared his insights with Anthony Pompliano on The Pomp Podcast on October 3, 2026, stating that “FOMO is going to start to kick in very, very soon” for Bitcoin (CRYPTO:BTC). FOMO, which stands for fear of missing out, refers to the rush of buyers who jump in after a price surge to avoid being left behind. Visser pinpointed a key level for Bitcoin, saying, “When Bitcoin got above $82,000, that was the confirmation of the bull trend.”
As of October 6, Bitcoin is trading at $86,050, about 5% above that crucial line, following a remarkable 32% increase over the past two months. However, it is still 31% lower than its price a year ago and slightly below where it began 2026. So, what is making Visser expect a buying surge, and why isn’t it happening yet?
Visser’s Bitcoin Call Leans on Lower Long-Term Treasury Yields
Visser believes this recent rally is fueled by new money entering the market. He explained, “Most of what’s driving crypto right now is a combination of new players coming in. This is what a bull market is about.” He linked this influx to developments in Washington and the bond market.
On September 28, Treasury Secretary Scott Bessent appointed Jefferies strategist David Zervos as a counselor. Zervos has supported Bessent’s Treasury buyback program, and Visser remarked that Zervos is “being brought in to help get long-term rates lower.” When long-term government bond yields are high, investors can earn a solid return with minimal risk, which reduces the incentive to hold Bitcoin.
In a buyback, the Treasury replaces older long-dated bonds with new debt before they mature, which can lead to lower yields. However, this buyback process only substitutes one type of debt for another and has a weaker market impact than quantitative easing (QE), where the Federal Reserve creates new money to buy bonds. Therefore, a buyback doesn’t provide the same boost as QE would.
Visser also noted a softer-than-expected core PCE reading, which is the Fed’s preferred measure of inflation excluding food and energy prices. He pointed to a jobs report showing weaker hourly earnings growth, easing inflation concerns and giving bond yields room to stabilize. Nevertheless, he maintains a cautious outlook, stating, “So maybe rates settle here. They don’t have to go down, guys.”
Spot Bitcoin ETF Inflows Have Turned Choppy Since September 21
Typically, new investors first enter the market through U.S. spot Bitcoin ETFs—funds that hold Bitcoin on behalf of their shareholders. According to SoSoValue, these funds experienced their biggest inflow of nearly $999 million on September 21, between September 8 and October 5.
However, after that peak, ETF activity has become erratic. The funds saw outflows on September 30, gained funds again on October 1 and 2, but lost $90 million on October 5, while managing about $111 billion in total assets. This suggests existing investors are holding on, while new buyers are less consistent.
Further complicating matters, the Senate let crypto investors down on September 15, voting 49-50 to advance the CLARITY Act, a measure aimed at establishing federal regulations for crypto markets. The motion fell short of the 60 votes it needed, and investors withdrew $450 million from ETFs that same day, marking the largest outflow during this period.
Investors in crypto-related stocks have not supported Visser’s optimistic outlook either. Coinbase (NASDAQ:COIN | COIN Price Prediction) shares have fallen 52% over the past year, and Robinhood (NASDAQ:HOOD) shares are down 22%. Coinbase attributed its disappointing second-quarter results to a 25% quarter-over-quarter drop in spot trading volume and low crypto market volatility. Meanwhile, Robinhood’s crypto revenue dropped 38% from a year earlier to around $100 million.
Visser’s AI Agent Tokens Are Up 50% in 2026 While Bitcoin Lags
Visser draws a parallel between the current crypto market and the chip industry. He describes his “Micron moment” thesis, which suggests AI agents—software that acts on users’ behalf—could boost demand for crypto tokens the same way AI data centers increased demand for Micron Technology (NASDAQ:MU) memory chips. He credits this demand with a striking 14-fold increase in Micron’s stock, including a 449% gain over the past year.
His index shows the distribution of early gains, with his 46 equally weighted assets—including various layer-1 blockchains and four public stocks—up 50% for 2026 as of the podcast. Because of this equal weighting, a small token can influence the index significantly, and Visser noted that “most of it’s being driven by the AI agent side.” Bitcoin, however, which closely follows interest rates and fund flows, has missed out on most of this rally.
Can Bitcoin Stay Above $82,000 Until Wall Street Joins the FOMO? Bitcoin may hold above $82,000 for now, but Visser’s FOMO prediction relies on buyers who have yet to materialize. He anticipates that large investors will enter the market in the fourth quarter, saying, “I do feel like Wall Street, they’re ready for the fat pitch now.” So far, the ETFs haven’t fully matched this optimism.
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In the latest trading session, Robinhood Markets, Inc. (HOOD - Free Report) closed at $112.00, marking a -1.85% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Coming into today, shares of the company had lost 6.55% in the past month. In that same time, the Finance sector lost 4.49%, while the S&P 500 gained 0.84%.
The investment community will be closely monitoring the performance of Robinhood Markets, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2026. The company is predicted to post an EPS of $0.55, indicating a 9.84% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.41 billion, indicating a 10.34% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.14 per share and a revenue of $5.28 billion, indicating changes of +4.39% and +17.99%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Robinhood Markets, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.58% higher. As of now, Robinhood Markets, Inc. holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Robinhood Markets, Inc. currently has a Forward P/E ratio of 53.21. This expresses a premium compared to the average Forward P/E of 13.1 of its industry.
It is also worth noting that HOOD currently has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Back in May, Robinhood (HOOD -1.86%) launched Robinhood Agents, an in-app feature that allows its users to connect AI models (including those from OpenAI and Anthropic) to their accounts to analyze markets, build strategies, and even trade stocks and cryptocurrencies.
At its recent HOOD Summit in Houston, Robinhood revealed that over 150,000 of its customers had already opened agnetic trading accounts, and that those agents were using Robinhood's tools nearly 30 million times per day. CEO Vlad Tenev said that integration gave retail traders the "tools once reserved for hedge funds, big banks, and quant firms."
Image source: Getty Images.
Allowing an AI agent to actively place trades might sound like a risky move, but Robinhood believes that strategy could strengthen its core business. Let's see how Robinhood Agents work, the guardrails that limit their abilities, and their long-term growth potential.
How do Robinhood Agents work? Robinhood users must open a new sub-account with a defined balance to access Robinhood Agents' AI-driven trades. That isolation blocks the agents from accessing their main accounts.
By default, Robinhood Agents require users to manually approve drafted stock and crypto trades. However, more daring investors can hand over the reins and have the AI agents automatically execute trades based on their own strategies, with no user intervention. In automated trading mode, the AI agents can only make trades based on the user's established boundaries -- which can include a capped allocation size or specific risk thresholds.
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How could Robinhood Agents strengthen the company? Robinhood doesn't charge commissions on its trades, but it sells its bundled orders to high-frequency trading firms that can execute them at more favorable prices. Those payment-for-order-flow (PFOF) fees account for most of its transaction-based revenue.
To keep growing, Robinhood needs to continue gaining new accounts and have those customers place more active trades. That's why it flourished during the buying frenzy in meme stocks and cryptocurrencies during the pandemic, but struggled when rising interest rates drove investors to park their cash in more conservative, income-generating investments.
Robinhood Agents could smooth out those trading volumes by automatically executing more trades. That could be a crucial strategy in this market, with the 10-Year Treasury yield hovering near its highest level since 2007 and chilling the demand for riskier investments.
Robinhood Agents also complements the company's broader strategy of entering next-gen trading markets -- including prediction markets (through Robinhood Derivatives), tokenized real-world assets (RWAs), and tokenized stocks -- before its bigger competitors. That expansion could also increase the stickiness of its ecosystem and widen its competitive moat.
But could this be a premature move? Most traditional brokerages haven't yet connected their platforms to AI models, giving Robinhood a first-mover advantage in this nascent market. However, it could also be premature for Robinhood to dive headfirst into the market, as the risks remain unknown.
Plenty of smaller companies have already tried to automate stock and crypto trades with AI-powered trading apps. Still, many of those efforts flopped because they failed to understand one of the core tenets of investing: past performance never guarantees future gains. AI models can crunch past data, but basing future trades on those historic patterns can be disastrous. The market is also often irrational, driven by human emotions rather than cold, machine-like logic.
Robinhood knows this; that's why it's surrounding its AI agents with guardrails. So while its big AI bet might eventually pay off, it probably won't replace manual trading anytime soon. After all, 150,000 accounts only equals 0.5% of its 28.4 million funded customers.
Is Robinhood's stock still worth buying today? From 2025 to 2028, analysts expect Robinhood's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 21% and 24%. Its stock isn't a screaming bargain at 34 times next year's adjusted EBITDA, but its popularity among younger retail investors and its ambitious expansion plans could justify that higher valuation.
The most interesting signal from Robinhood Markets, Inc. (NASDAQ:HOOD) traders this week is not that they sold Big Tech. It is that they sold while Big Tech was rising.
Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Tesla, Inc. (NASDAQ:TSLA) all gained Friday. Yet, Robinhood’s buy-and-sell data showed more selling than buying in each name — a notable divergence that suggests some retail traders were using the rally to trim positions rather than abandoning Big Tech altogether.
• Alphabet stock is building positive momentum. Why is GOOG stock advancing?
Big Tech Rallied, Retail TrimmedTesla was the clearest example. The stock jumped more than 5% Friday, leading a broad advance among certain megacap stocks. Alphabet gained about 1.6%, while Amazon added roughly 1.3%.
Yet Robinhood’s Friday data showed buy/sell ratios of just 0.67 for Tesla, 0.67 for Alphabet Class A and 0.70 for Amazon.
A ratio below one means selling activity exceeded buying activity. At face value, that looks bearish.
But the monthly numbers tell a different story.
Tesla’s one-month ratio was 1.08, while Alphabet and Amazon stood at 1.20 and 1.19, respectively. All three therefore remained net-buying names over the broader period, even as traders reduced exposure during Friday’s rally.
That distinction matters. Selling into a rally is very different from selling into a collapse.
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Robinhood Traders Had Just Set a RecordThe timing makes the shift even more interesting.
Just one day earlier, Robinhood reported that its retail customers had produced their largest-ever five-day net purchase streak in individual stocks. The buying was concentrated in names including Fair Isaac Corp (NYSE:FICO), Summit Therapeutics Inc. (NASDAQ:SMMT), MongoDB, Inc. (NASDAQ:MDB) and Navitas Semiconductor Corp (NASDAQ:NVTS).
That suggests Friday’s Big Tech selling did not arrive after a period of broad retail capitulation. It followed an unusually aggressive stretch of dip-buying.
In other words, the Robinhood crowd may have been doing something fairly rational: buying weakness earlier in the week, then taking some gains when the market bounced.
It is also worth remembering that Robinhood’s data represents activity on its platform, not the entire retail-investor universe. The company itself has been pushing further into active trading, announcing AI-powered trading agents, longer options hours, perpetual futures and plans for 24/7 weekend stock trading.
The AI Trade Hasn’t Been AbandonedThat leaves investors with a more nuanced signal.
Amazon, Alphabet and Tesla were all sellers on Friday, but their one-month ratios remained above one. Broadcom Inc. (NASDAQ:AVGO) showed an even sharper split, with a 0.62 one-day ratio against 1.10 over a month.
The pattern suggests retail investors are becoming more willing to trade around their favorite technology positions rather than simply buy and hold them.
For investors, that could become important as the fourth-quarter rally moves into a heavy earnings period. The question isn’t whether retail traders will sell Big Tech again. They clearly will. The more useful signal is whether those one-month ratios start falling below one.
If they do, Friday’s profit-taking could start looking less like portfolio maintenance and more like a genuine shift in conviction.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Robinhood Markets, Inc. (HOOD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -7.7%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Financial - Investment Bank industry, which Robinhood Markets falls in, has lost 7.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Robinhood Markets is expected to post earnings of $0.52 per share, indicating a change of -14.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
The consensus earnings estimate of $2.13 for the current fiscal year indicates a year-over-year change of +3.9%. This estimate has changed +1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.82 indicates a change of +32.5% from what Robinhood Markets is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Robinhood Markets is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Robinhood Markets, the consensus sales estimate for the current quarter of $1.38 billion indicates a year-over-year change of +8.2%. For the current and next fiscal years, $5.23 billion and $6.63 billion estimates indicate +17% and +26.7% changes, respectively.
Last Reported Results and Surprise HistoryRobinhood Markets reported revenues of $1.31 billion in the last reported quarter, representing a year-over-year change of +32.3%. EPS of $0.62 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $1.26 billion, the reported revenues represent a surprise of +3.49%. The EPS surprise was +40.91%.
Over the last four quarters, Robinhood Markets surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Robinhood Markets is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Robinhood Markets. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways Robinhood is rolling out U.S. crypto perpetual futures using Bitstamp infrastructure with leverage up to 10x.Bitstamp generated 55% of Robinhood's $40 billion in total crypto notional volume in Q2 2026.Low fees, crypto volatility and regulatory uncertainty could make revenue growth from perpetuals gradual. Robinhood Markets’ (HOOD - Free Report) U.S. crypto perpetual futures rollout is putting greater focus on Bitstamp’s role within the company’s expanding digital asset ecosystem. While it initially said at its Sept. 29 HOOD Summit that eligible U.S. customers would gain access to perpetuals “in the coming months,” its latest product status page says the offering is beginning to roll out, signaling faster progress toward commercialization.
Bitstamp is central to that strategy because Robinhood’s perpetual futures are offered through Robinhood Derivatives using Bitstamp infrastructure. The contracts offer leverage of up to 10x on Bitcoin and Ethereum and up to 3x on other supported cryptocurrencies. Through Dec. 31, 2026, Robinhood charges a 0.005% commission, and the venue fee is another 0.005%, bringing total trading costs to 1 basis point.
Bitstamp already brings meaningful scale to Robinhood’s crypto platform. In the second quarter of 2026, it accounted for 55% of Robinhood’s $40 billion in total crypto notional volume. However, Bitstamp’s high volume does not necessarily translate into proportionately high revenues because its institutional-oriented business generally carries lower transaction economics than Robinhood’s retail crypto activity. Robinhood has said its crypto revenues benefited from the Bitstamp acquisition but does not separately report Bitstamp’s complete standalone revenue contribution.
The perpetual futures rollout is expected to enhance Robinhood’s monetization of Bitstamp’s established trading infrastructure and support another leg of growth in its crypto franchise. If adoption gains traction, higher-frequency derivatives trading could boost customer engagement and expand transaction-based revenues.
However, the magnitude of the benefit will depend on trading volumes, customer uptake and Robinhood’s ability to improve pricing economics over time. Low introductory fees, volatile crypto activity and regulatory uncertainty remain key near-term headwinds, suggesting that the revenue contribution may build gradually rather than emerge as an immediate earnings driver.
How are HOOD’s Peers Faring in Terms of Product DiversificationTwo close peers of HOOD are Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) .
Schwab is broadening its offerings across ETFs, direct indexing, thematic investing, alternative assets, managed portfolios, banking and digital assets. Expanded crypto access in 2026, alongside personalized investing and advisor solutions, is expected to attract younger and wealthier clients, deepen engagement and help Schwab capture a larger share of client assets.
Interactive Brokers is expanding beyond traditional stocks and options into crypto, perpetual-style futures, prediction markets, AI-enabled trading and broader global-market access. Interactive Brokers’ unified platform now spans more than 170 markets, helping attract active traders, international investors and digital-asset clients while deepening engagement and supporting market share gains.
Robinhood’s Price Performance, Valuation & Estimate AnalysisOver the past six months, Robinhood’s shares have jumped 61.6%, outperforming the industry’s 9.9% growth.
Image Source: Zacks Investment Research
HOOD’s shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 11.71X compared with the industry average of 3.04X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 3.9%. The trend is likely to continue next year, with earnings expected to jump 32.5%. In the past 30 days, earnings estimates for 2026 and 2027 have been revised higher to $2.13 and $2.82 per share, respectively.
Image Source: Zacks Investment Research
HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood's (HOOD +1.43%) revenue growth has been impressive.
In the second quarter, the company generated $1.31 billion of revenue, up 32% from a year earlier. Earnings per share rose 48% to $0.62. Those numbers tell us Robinhood is scaling rapidly.
But they don't tell us the whole story. For that, investors should look at another number: the amount of money customers keep on the platform.
By August 2026, Robinhood held $384 billion in platform assets, up 26% from a year earlier. Customers also added $4 billion of net deposits during August, while trailing 12-month net deposits reached $74.1 billion.
That matters because it indicates the long-term opportunity Robinhood has to monetize these assets and customer relationships.
Image source: Getty Images.
It all starts with the customer Consider a simple example. Someone opens a Robinhood account and deposits $5,000.
That customer might generate little revenue at first, but over time, the relationship can become much more valuable. The customer might buy stocks and options. They could subscribe to Gold (Robinhood's membership subscription), trade crypto, or participate in prediction markets. Every transaction generates income.
On top of that, the customer might also keep adding money to the account. That's a huge opportunity.
Robinhood doesn't need to persuade the customer to trade more stocks every year. Instead, it needs to become more useful over time, so that the customer gradually brings more of their financial life onto the platform.
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Making sure the money keeps coming in Robinhood's trailing 12-month net deposits is an important metric. It shows whether customers are continuing to move substantial amounts of money onto the platform. If the company can sustain this trajectory, it won't be long before the customer assets exceed $1 trillion.
Robinhood doesn't need all that growth to come from new customers. Existing customers can increase their balances as their incomes and savings grow. Investment gains can also increase the value of assets already on the platform.
That creates a potentially powerful combination. More customers can bring in more money. More money creates more opportunities to offer financial products, and better products can encourage customers to keep even more of their financial lives on Robinhood.
That's a very different business from one that simply relies on trading commissions or transaction activity, as Robinhood did in the past.
Robinhood is developing additional ways to monetize its customers Relying on trading activities can be volatile. When markets run hot, customers tend to trade more. When markets quiet down, trading activity can fall.
To overcome this issue, Robinhood has been developing additional revenue streams. The company said that by Q2 2026, 13 of its business lines had reached more than $100 million in annualized revenue. Better still, average revenue per user increased 24% year over year to $187.
Those numbers indicate an important evolution in the business model. Robinhood is increasingly making money from the customer relationship, not just the trade.
A customer doesn't necessarily need to buy and sell more stocks for Robinhood to generate more revenue. The company can earn from subscriptions, interest income, card spending, crypto, prediction markets, and other products.
That gives Robinhood more ways to monetize the same customer over time.
What investors should watch over time This is why I wouldn't focus only on Robinhood's quarterly revenue.
Revenue indicates how much the company generated during a particular period. On the other hand, platform assets and net deposits tell us how much money customers are entrusting to the platform. Neither metric guarantees future revenue, but together, they provide an important clue about the potential size of Robinhood's customer relationships.
So when Robinhood reports its next results, I'll be watching four numbers closely: funded customers, net deposits, platform assets, and revenue per customer.
If all four continue moving in the right direction, it indicates that Robinhood is on the right track of implementing its long-term strategy -- to become a place where millions of people do an increasingly large share of their financial business.
That may ultimately prove more valuable than simply getting customers to trade more stocks.
Most investors still think of Robinhood (HOOD +1.43%) as an app for buying and selling stocks. That description, however, is becoming increasingly outdated.
In 2026, Robinhood launched Robinhood Chain, a blockchain built specifically for financial assets. The company is also rolling out tokenized stocks, giving eligible users worldwide access to digital versions of U.S.-listed stocks through Robinhood Wallet.
At first, this might sound like another crypto experiment. But there is a bigger idea underneath it.
Robinhood isn't simply adding another way to trade. It is betting that technology will change how people own, move, and use financial assets -- and it wants to build part of that new system.
Image source: Getty Images.
Why put stocks on a blockchain? Let's forget the technical jargon for a moment.
Today, when you buy a stock, a traditional financial system handles the transaction. Brokers, exchanges, clearinghouses, and custodians all play different roles.
Blockchain technology offers another approach. A digital token can represent an asset -- such as a stock -- and interact with other applications on the same network. In simple terms, that makes the asset more programmable.
Imagine owning a tokenized stock that you could potentially use as collateral for a loan or connect to another financial application without moving through several separate systems.
That's the interesting part. The opportunity isn't simply to trade stocks around the clock. It is the possibility that stocks and other financial assets could become building blocks for entirely new financial products.
We're not there yet. But Robinhood wants to be ready if that future arrives.
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Robinhood already has something most new networks don't Building a blockchain is one thing. Getting people to use it is another. This is where Robinhood has an interesting advantage.
The company already has millions of customers and hundreds of billions of dollars flowing through its platform. By the end of the second quarter of 2026, Robinhood had 28.4 million funded customers and $369 billion in platform assets.
That's a sizable distribution network. More importantly, it gives Robinhood something many blockchain projects spend years trying to build: an audience.
The company doesn't have to find millions of customers from scratch. If customers already trust Robinhood with their investments, Robinhood can introduce them to new financial products as the technology develops. That could become a meaningful advantage if tokenized assets gain traction.
The opportunity could be massive Robinhood Chain isn't simply about cryptocurrencies. The company is building the network for real-world assets, including equities and other financial instruments.
If tokenization becomes more widely adopted, financial assets could become digital building blocks that interact with one another.
Think about what that could mean. A tokenized asset -- such as a stock or other financial instrument -- could potentially be traded, serve as collateral, or connect to another financial application. Instead of keeping financial products in separate silos, developers could eventually connect them more easily. That could make financial markets faster and more flexible.
Of course, investors shouldn't assume that this business will grow in a straight line -- that Robinhood can just build the infrastructure and automatically make it successful. It needs developers to build useful applications, increase liquidity, and persuade customers to use tokenized assets instead of traditional ones.
In other words, the technology and ecosystem behind it need to be sufficiently useful to encourage adoption. We are still some distance from that stage.
What does it mean for investors? Robinhood has spent the past few years expanding well beyond its original stock-trading business, moving into subscriptions, credit cards, and prediction markets.
Robinhood Chain takes that strategy a step further. Instead of simply adding another product to its app, Robinhood wants to build infrastructure that could support many financial products in the future.
That's a big ambition, but it also carries huge uncertainty. Tokenization remains an emerging market, and there is no guarantee that it will become a major part of financial markets.
Still, if financial assets increasingly move onto blockchain networks, Robinhood would be in a great position to capitalize on it. It has the customers, the distribution, and potentially the infrastructure.
Investors should closely monitor the development of this business in the coming quarters.
Customers at Robinhood Markets (HOOD +1.43%) can buy and sell many of the most popular stocks and exchange-traded funds (ETFs) from Sunday at 8 p.m. ET until Friday at 8 p.m. ET on the broker's 24 Hour Market. That adds up to 120 hours a week, and it leaves the weekend as the only time when stocks are off-limits.
At its HOOD Summit in Houston on Sept. 29, the firm said it plans to fill the gap by letting customers trade a curated list of U.S. stocks and ETFs around the clock, weekends included. Robinhood expects to launch it early next year, pending regulatory review.
Adding weekends would bring the 24 Hour Market to all 168 hours in a week, or about 40% more time to trade. But I don't think 40% more hours means anywhere near 40% more revenue.
Image source: The Motley Fool.
Stock trading is a smaller business than it looksRobinhood's equities revenue comes mainly from payment for order flow (fees that trading firms pay the broker to handle its customers' stock orders).
Showing how fast this line is rising, equities revenue almost doubled year over year to $129 million in the second quarter, according to Robinhood's quarterly filing. That was up from $82 million in the first quarter, too. So equities made up around 17% of transaction-based revenue, compared with about 13% three months earlier and 12% a year before. Average stock-trading volume per trader grew 56%, and the number of customers making stock trades climbed 13%.
But against total revenue of $1.31 billion (up 32% year over year), equities supplied just 10%.
And Robinhood's take is small. Customers traded a record $956 billion in stock in the quarter, up 85% from a year earlier, so the company earned around $1.35 of equities revenue per $10,000 traded.
This growth has slowed a little since then. In August, customers traded 68% more stock by dollar value than a year earlier, according to Robinhood's monthly operating data.
How much might weekends add?Robinhood doesn't say in its quarterly reports how much of its stock volume already trades in the 24 Hour Market, so any estimate here is rough.
At the second quarter's pace, equities revenue comes to around $516 million a year. If weekend hours boosted that by the full 40% the extra time represents, the rise would be about $206 million, or about 4% of Robinhood's yearly revenue pace of $5.2 billion.
I'd say the company probably won't get near that ceiling. Weekend trading will start with a limited list of stocks and ETFs. And some Saturday trades could just be trades a customer would've made on Monday morning anyway, which shifts revenue around instead of adding to it.
A 5% to 10% boost to equities revenue would add about $26 million to $52 million a year -- 1% of sales at most.
Sure, weekend hours could also keep active traders on the app on days when stocks have been off-limits, and so could the artificial intelligence (AI) agents Robinhood introduced at the summit to trade for customers. Any payoff there is tougher to measure.
Cheap to startThe summit's other launches tie into bigger revenue lines. But the tech company is pricing them to win customers first.
Perpetual futures, which are leveraged crypto contracts that never expire, are starting to roll out to eligible U.S. customers, with up to 10x leverage on Bitcoin and Ether and 3x on six other coins. Robinhood plans to charge just 0.01% a trade on them through the end of the year. Over time, they might help a shrinking crypto business, whose second-quarter revenue dropped 38% from a year earlier, to $100 million.
Earnings contracts, exchange-listed binary options linked to company-specific performance metrics, are expected to launch in October, pending regulatory approval. Robinhood won't charge contract fees for them through year-end, either.
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Also starting in October, Robinhood is adding 35% more options trading hours for its most popular symbols. The same caution about hours applies. But options are Robinhood's largest transaction line, at $342 million last quarter, so the move is arguably the bigger opportunity.
Ultimately, weekend trading looks more like a convenience for Robinhood's most active customers than a big new source of revenue.
At about $112 as of this writing, Robinhood's shares cost around 38 times earnings, using analysts' forecasts for 2027.
For a growth stock with revenue climbing so fast, some premium makes sense. But the price already assumes Robinhood keeps adding new ways to make money for years to come, and weekend trading is probably one of the smaller ones.
Robinhood just handed US traders the ability to control 10 times their money in Bitcoin and Ether, and the timing could not be more loaded. With hundreds of millions already wiped out in a single day of crypto liquidations, the…
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Robinhood (NASDAQ: HOOD | HOOD Price Prediction) is preparing to let US traders trade Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) with up to 10x leverage. This announcement comes just a day after the cryptocurrency market saw significant liquidations totaling $478 million. The company revealed its new Robinhood perpetual futures at the HOOD Summit on September 29, 2026. The launch is expected to roll out to eligible US customers in the upcoming months.
In addition to Bitcoin and Ether, the perpetual futures contracts will also include Solana (CRYPTO: SOL), XRP, Dogecoin, Cardano, Chainlink, and Hyperliquid, although Robinhood limits the leverage on these six coins to 3x. The company is also planning to introduce weekend trading for select stocks and ETFs through Bruce ATS, an alternative trading system, in early 2027, pending regulatory approval.
Data from CoinGlass reveals that on September 28, traders lost $478 million due to liquidations, with long positions—those positioned for prices to rise—accounting for $386.5 million of that loss. While the three major cryptocurrencies have seen impressive gains over the last 90 days, they still trade well below where they were a year ago.
Coin Price (October 3) 90-Day Change 1-Year Change Bitcoin $84,621 +33.3% -29.8% Ether $2,683 +51.8% -38.7% Solana $119 +44.6% -46.4% So, what does Robinhood’s introduction of 10x leverage imply? Is it a sign that fresh capital is entering the crypto market, or is it more borrowed money feeding a crowd that just experienced major losses?
How 10x Perpetual Futures Can Liquidate Traders Before Prices Recover
Perpetual futures are contracts that mirror a cryptocurrency’s price without an expiration date, allowing traders to hold positions as long as they maintain sufficient cash, known as margin, in their accounts. Robinhood’s contracts will settle profits and losses every 15 minutes.
Leverage lets traders control a larger position with less money. For example, with 10x leverage, a 10% drop in Bitcoin’s price could wipe out a trader’s entire margin. In contrast, someone who simply owns Bitcoin would only lose 10% of their investment. With 3x leverage, a trader’s margin would sustain through a decline of about 33%.
When losses deplete the margin, the trading platform automatically closes the position, resulting in a liquidation. Each forced closure of a long position triggers a forced sale, which further lowers prices and can push the next highly leveraged long position into liquidation. If the price rebounds shortly after, the liquidated trader misses that potential gain.
Interestingly, stock investors remained calm during the September 28 sell-off. The CBOE Volatility Index, which gauges expected market fluctuations, registered at 16.1 that day, falling within the 15 to 20 range typically viewed as normal. This suggests that the leverage impact was felt primarily within the crypto market rather than causing widespread concern in traditional markets.
Does Robinhood’s 10x Leverage Bring New Buyers to Crypto?
Proponents of this launch view it as a step toward greater mainstream adoption. The entry of a major retail trading app like Robinhood into crypto derivatives signals growing interest among regular investors, which could increase market participation over time.
However, leverage primarily increases the size of existing positions rather than adding new participants. A trader who already owns Bitcoin and opens a 10x perpetual future is still essentially the same buyer, but with a much larger stake. This borrowed size can contribute to forced selling during downturns and forced buying during upward price movements, potentially amplifying volatility in both directions.
Moreover, the total liquidations reported only reflect those that have already closed. The $478 million figure includes only positions liquidated on September 28, leaving out other leveraged positions that remain open. Because perpetual futures trade within a venue’s order book, this data isn’t captured on the blockchain.
Another factor to consider is Robinhood’s AI trading agents. Since May, over 150,000 customers have started using these agents, which analyze markets, build strategies, and execute trades, though manual approval is still required by default. If many agents react similarly to a sudden price drop, this could add to the selling pressure during an already challenging time.
Do Robinhood Perpetual Futures Make Crypto More Fragile? In the short term, yes. Robinhood’s introduction of perpetual futures allows for more borrowed capital in a market that has just seen substantial liquidations. This added leverage magnifies existing market positioning. While a large platform might attract new users over time, the product being offered is leverage, which tends to fuel volatility rather than stability.
The implications extend beyond the direct users of perpetual futures. A downturn could affect all crypto holders, as declines might be exacerbated and price recoveries could overshoot.
Traders who choose to leverage their positions should take precautions by using only funds set aside for speculation, as advised in 247’s free speculation playbook. If long positions are forced to liquidate again after the launch, pushing Bitcoin below $83,000, Robinhood’s perpetual futures could magnify the damage in an already fragile environment.
Contact [email protected] for any questions or corrections.
If Vlad Tenev, the chief executive officer of Robinhood Markets (HOOD +1.43%), is right that sports bets will become a minority of prediction market contracts within a few years, crypto investors might not see much upside directly. In the second quarter, the company brought in $156 million from its prediction market activities, up more than 10-fold year over year. In August 2026, per Robinhood's operating data, event contracts traded ran 15 times ahead of the levels of a year ago. And on Sept. 21, Tenev told CNBC that crypto-related contracts are already becoming a disproportionately large share of that segment, with sports-related contracts on track to become the minority within the next few years.
So what does this mean for crypto investors?
Image source: Getty Images.
Robinhood isn't the only platform seeing this trend Kalshi, a prediction market provider and one of the exchanges behind Robinhood's contracts, saw crypto prediction market volume increase from $337 million in January 2026 to about $7.5 billion by August. In the week ended Sept. 20, sports contracts still made up 21% of Kalshi's trading volume. And in that period, Bitcoin contracts were responsible for 13%, while bets bundling several different outcomes accounted for 62%.
Kalshi's crypto contracts, like Robinhood's, pose very short-term questions to traders, like whether Bitcoin will finish above a target price at the end of a 15-minute window.
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The idea is that traders can buy contracts for as little as a penny each, which pay $1 if right, and, given the quick turnover of new and timely contracts, potentially bet many times per day. Investors should note that it is generally a fool's errand to predict the short-term price movements of cryptocurrencies, just like it is with stocks. Of course, the prediction market operators make money from fees whether the underlying coin goes up or down, so it's in their interest to encourage as much trading as possible.
As for the prices of the cryptocurrencies that are the subject of the predictions, there isn't much reason to believe that they're directly affected by the odds implied by the contracts, nor by the outcomes of those contracts. The coins themselves don't change hands as a result of anything happening in the prediction markets.
Should you bet on crypto prices instead of investing? There is no compelling reason to transition your crypto investing activities into crypto prediction market trading activities. There are, however, many compelling reasons not to do that.
In a February 2026 Centre for Economic Policy Research (CEPR) column, a study of more than 300,000 Kalshi contracts found an average pre-fee loss of 20% per contract. The same investigation found that the probabilities implied by the contracts were too biased to be used as "true" probabilities. And if you're investing for the long term, as you should be, the resolution of any given 15-minute prediction about Bitcoin's price is not relevant to forming or adjusting an investment thesis for buying and holding it.
Nor does the Robinhood CEO's prediction about crypto outcome markets becoming bigger change any of that.
The crypto market itself is likely to grow considerably in coming years. That will doubtlessly create some of the anticipated growth in predictions about crypto prices. To get the most direct exposure to upside from the prediction component of that dynamic, specifically, buying Robinhood's stock is the most straightforward approach, as it earns revenue from every transaction. It's also a convenient play because of its brand-new Robinhood Chain blockchain, which will create even more fee revenue.
But for those who would prefer to only buy more crypto instead of stocks, there isn't necessarily much to do about or much to worry about regarding the expansion of crypto price prediction contracts. Own the coins that people are watching via prediction markets, and over the long run, their growth will continue to march onward regardless of what the bettors in the bleachers expect to occur in the next few minutes.
Legend has it that Robin Hood split his opponent's arrow at an archery tournament. It seems like magic. Yet, if you stay consistent in your aim and remain locked on your target, could the split-arrow feat become inevitable?
That same discipline on our swing trade HOOD stock left us undeterred when our first attempt missed. We re-aimed and hit the mark on our next two trades.
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A Miss Doesn't Mean Give Up
The market had an undeniably tough third quarter. Though we've kept exposure on the lighter side, it felt like every venture out of hiding was met with blows against us. Take Robinhood (HOOD). In August, the stock looked like it was breaking a downtrend (1). With strength in the highly correlated cryptocurrency markets, we took a shot by adding HOOD stock on SwingTrader.
When the follow-up strength didn't materialize, we immediately started trimming our position back (2) and our final exit (3) left us mostly unscathed. Much better to retreat to Sherwood Forest than stand out in the open when you lose the battle advantage.
But keeping a lookout for the next opportunity is critical. After a short pullback, HOOD stock gave us another setup and we tried another position on SwingTrader (4). We didn't let the prior miss prevent us from nocking another arrow.
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It certainly seemed that we split the arrow on the trade as the stock gapped up 16% the next day (5). Normally, that would induce some trimming. But we waited an extra day to see if there might be some more prize money for the trade. We scaled back slightly as HOOD pulled back but kept the bulk of its gains (6). When HOOD pulled back some more, we continued to take some profit off the table (7).
With as much cushion as we had, and the majority of the position locked in as a healthy profit, we decided to use the 21-day line as our stop for the rest. Once that was breached, we exited the remainder (8). But we still didn't lose sight of the target.
HOOD Stock Gives Us A Chance To Reload
Because we locked in a great deal of profit around 120, the pullback offered us a chance to get back in at a lower price around 115. The setup was there and not forced as we reentered HOOD for a third time (9). Consider it robbing from the peak to enrich the next trade.
We didn't stay long though. Within a few hours, we were already up over 5% from our entry and taking profits on half the position into strength. We sold another quarter the next day with an 8% gain from our entry (10) and the remaining position exited at a 7.3% gain (11).
Because we didn't hold a grudge on HOOD after getting stopped out, we took advantage of two great shots. That flexibility and consistency allowed us to take from the market and give to our portfolio.
More details on past trades are accessible to subscribers and trialists to SwingTrader. Free trials are available. Follow Nielsen on X, formerly known as Twitter, at @IBD_JNielsen.
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Looking For The Next Stock Market Winner? Start With These 3 Steps
Robinhood is bringing leveraged Solana trading to retail investors just as SOL surges off a two-month rally, raising a pointed question about whether a new futures venue adds fuel to the fire or simply hands traders a faster way to…
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Robinhood Markets (NASDAQ:HOOD | HOOD Price Prediction) has announced plans to introduce Solana perpetual futures for eligible U.S. customers. This new offering will give Solana (CRYPTO:SOL) traders a new platform for leveraged trading. The announcement was made at the HOOD Summit on September 29, 2026, alongside futures for other cryptocurrencies like Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), and XRP (CRYPTO:XRP). The new contracts are expected to launch in the coming months.
As of October 2, Solana is trading at $122, up 65% over the last two months, though it remains down 45% from a year ago. The question remains: will this new futures venue truly influence SOL’s price, or will it simply give traders another way to push it around? (FLAG: colon, “truly” and “simply”)
How Robinhood’s Solana Perpetual Futures and 3x Leverage Work
A perpetual future is a type of contract that mirrors the price of a cryptocurrency and doesn’t have an expiration date. Unlike traditional futures that settle on a set date, perpetual futures utilize a “funding payment” — a small fee exchanged between buyers and sellers to keep the contract price in line with the market price of Solana.
While Robinhood allows up to 10x leverage on Bitcoin and Ethereum, it limits leverage for Solana and the other six cryptocurrencies to 3x. With 3x leverage, a trader putting up $1,000 can control $3,000 worth of Solana. Therefore, a 10% change in Solana’s price could lead to a 30% gain or loss. If losses use up the initial investment, Robinhood will automatically close the position in a process known as liquidation.
Every contract has two sides. A trader who goes long profits if SOL’s price rises, while a trader who goes short benefits if the price falls. Robinhood settles the gains and losses in cash every 15 minutes, which means these contracts can introduce new positions to the market without changing the amount of SOL that holders possess. (FLAG: “It’s important to note” reads as AI phrasing)
CME Already Lists Solana Futures, but ETF Inflows Show the Buying
Currently, Solana already has a futures market. The CME Group launched Solana futures on March 17, 2025. After this launch, SOL’s price movements aligned with broader crypto trends, making it hard to isolate the impact of the new listing. With Robinhood entering the scene, the market gains an additional venue and offers perpetual contracts specifically for retail traders. (FLAG: “Currently” doubles up with “already”)
Recent fund flows provide clearer insights. U.S. Solana ETFs recorded a record $188 million in inflows in the week ending September 25, after 12 consecutive weeks of positive inflows through September 19. These ETFs purchase SOL to create new shares, thereby taking tokens off the market with each inflow.
Futures trading, however, measures something different. Open interest—the total value of contracts still in play—could rise on Robinhood, but this won’t necessarily reflect the actual amount of SOL held by long-term owners. Trading volumes may soar as perpetual futures attract more short-term traders who frequently open and close positions, unlike long-term holders. (FLAG: “actual” is on the banned list)
Leverage Could Make SOL’s Price Swing Harder in Both Directions
Introducing leveraged trading amid Solana’s price rally adds risk. After surging 65% in two months, traders who leverage their positions to capitalize on such momentum may find themselves forced out of their trades if prices reverse. (FLAG: gerund openers “Introducing” and “After surging”)
If Solana’s price drops, Robinhood and other platforms would liquidate leveraged long positions, driving the price down further. This can trigger a chain reaction of forced sales, often called a liquidation cascade. The process works similarly when short sellers are forced to cover their positions, amplifying price swings in both directions without bringing in new holders.
However, the 3x leverage cap limits the additional pressure from Robinhood traders. A Solana trader using 3x leverage can withstand about a 30% drop before liquidation, while a Bitcoin trader using 10x leverage faces liquidation after just a 10% drop.
Will Robinhood’s Solana Perpetual Futures Move SOL’s Price? In summary, Robinhood’s introduction of Solana perpetual futures is unlikely to have a lasting impact on SOL’s price. While the contracts introduce new traders and add leverage, the overall supply held by current owners remains unchanged. The leverage cap on Solana also suggests that the added price swings from Robinhood’s Solana contracts will be smaller than from its Bitcoin and Ethereum contracts. (FLAG: “In summary” reads as AI phrasing)
For existing holders, these futures contracts may offer little insight into future price movements. Weekly ETF inflows will be a more telling sign.
If such inflows continue post-launch, it suggests new investments are entering the market alongside the leveraged trading. Conversely, if SOL dips below $118—around 3% lower than its price on October 2—while ETF inflows reverse into outflows, it may indicate leveraged positions are being liquidated, further pressuring the price.
Contact [email protected] for any questions or corrections.
