Robinhood Markets shares advanced approximately 4.5% in after-hours trading Monday, reaching $86.56, following an analyst upgrade from Wolfe Research. The firm elevated its rating on the retail brokerage from Peerperform to Outperform and established a $125 price target, suggesting significant upside from current levels.
Earnings Focus on Crypto Exposure
Investors are closely monitoring Robinhood's fourth-quarter results, scheduled for release Tuesday after the market closes. Key areas of focus include trading volume resilience and revenue generated from cryptocurrency transactions. In the first nine months of 2025, crypto-related activities contributed 36% of the company's transaction-based revenue, highlighting its sensitivity to digital asset market sentiment.
Analysts surveyed by FactSet anticipate adjusted earnings near $0.67 per share on revenue approximating $1.35 billion for the quarter. The report arrives amid concerns about weak cryptocurrency sentiment and regulatory uncertainties that Barclays warned could pressure results.
Product Diversification Efforts
Management, including CEO Vlad Tenev and incoming CFO Shiv Verma, will host a video call at 5 p.m. ET Tuesday to discuss results. Investors will seek updates on the company's expansion into new products like prediction markets and options trading, initiatives designed to reduce reliance on volatile crypto revenue streams.
Barclays noted that recent product launches may require time to materially impact profitability and highlighted ongoing state-level legal challenges surrounding sports-themed prediction markets as a potential headwind.
The positive sentiment extended to other financial platforms Monday, with Interactive Brokers gaining about 5.1%, Charles Schwab adding 2.0%, and cryptocurrency exchange Coinbase rising roughly 1.3% in late trading.
