5 Robinhood Analysts React To 'Blowout' Q4 Earnings: Can The 'Tremendous Momentum' Continue?

Robinhood Markets Inc (HOOD) reported a strong fourth quarter, with revenue of $1.01 billion and earnings of $1.01 per share, beating analyst estimates. The company's stock price surged 13% following the announcement, reflecting analysts' overwhelmingly positive reactions to the results. Here's how five analysts reacted to Robinhood's 'blowout' quarter and their outlook for the company's future:



1. KeyBanc analyst Steve Barger maintained an Overweight rating and raised the price target from $57 to $75. He praised Robinhood's improving profitability and momentum with key product initiatives, stating that the company is well-positioned to continue its leadership in the financial application space. Barger believes that Robinhood's culturally relevant brand will enable it to make further inroads within the targeted segment across various financial products.
2. JMP Securities analyst Devin Ryan maintained a Market Outperform rating and raised the price target from $60 to $77. He called it a "blowout quarter" for Robinhood and sees elevated growth persisting across virtually all aspects of its business. Ryan also noted that the company is entering new markets and has incremental areas for innovation still to come, further boosting its growth prospects.
3. Needham analyst John Todaro maintained a Buy rating and raised the price target from $52 to $70. He highlighted Robinhood's ability to maintain expense discipline and reach 60% EBITDA margins while reporting strong growth across all three transaction segments. Todaro expects Robinhood to launch new crypto-related products in 2025, which should allow the company to take share from centralized and decentralized peers.
4. Goldman Sachs analyst James Yaro maintained a Buy rating and raised the price target from $54 to $62. He expects Robinhood to continue rolling out new products that will help the company capture market share and expand globally. Yaro raised net revenue estimates for full-year 2025 by 11% and adjusted earnings estimates by 15% based on the stronger trends in the fourth quarter.
5. JPMorgan analyst Kenneth Worthington maintained a Neutral rating and raised the price target from $39 to $45. He acknowledged the significant progress at Robinhood but remains cautious on new products and the scale of the company versus larger competitors. Worthington is also skeptical of the profitability potential of Robinhood's smaller accounts.



In conclusion, analysts' positive reactions to Robinhood's 'blowout' Q4 earnings reflect their confidence in the company's growth trajectory and its ability to sustain momentum. While there are differing opinions on the extent of the company's potential, the overwhelming consensus is that Robinhood is well-positioned to continue its success in the financial application space. As the company continues to innovate and expand its product offerings, investors will be watching closely to see if the 'tremendous momentum' can indeed continue.