Robinhood Expands AI Investing and New Services, Impact on HOOD Investors Examined

Robinhood Markets has expanded into AI-powered investing, credit, crypto, and advisory services, fueling its investment narrative. The company's sustained asset and deposit growth is tied to ongoing innovation and regulatory clarity. The biggest risk is increased competition from traditional brokers dampening margins. Robinhood's outlook projects $5.3 billion in revenue and $1.8 billion in earnings by 2028, with a fair value of $113.09, a 3% upside to its current price. Retail investors have published 39 fair value estimates ranging from $32.65 to $158.37.

Robinhood Markets, Inc. (NASDAQ:HOOD) has been making significant strides in expanding its services, incorporating AI-powered investing, credit, crypto, and advisory services into its platform. This strategic move is aimed at fueling its investment narrative and driving sustained asset and deposit growth. The company's innovation and regulatory clarity have been key drivers behind this expansion.

The latest quarterly earnings report from Robinhood Markets showed a quarterly earnings per share of $0.42, which exceeded analysts' expectations of $0.30. Revenues increased by 45% year-over-year to $989 million, demonstrating the company's robust financial performance [1]. The company's expansion into new service areas is expected to contribute to this growth trajectory.

However, the biggest risk to Robinhood Markets is increased competition from traditional brokers, which could potentially dampen margins. The company's ability to maintain its competitive edge will be critical in the coming years.

Looking ahead, Robinhood Markets projects $5.3 billion in revenue and $1.8 billion in earnings by 2028. The fair value of the company is projected to be $113.09, representing a 3% upside to its current price. Retail investors have published a range of fair value estimates, with figures ranging from $32.65 to $158.37 [2].

Institutional investors have also been active in the Robinhood Markets stock. Credit Agricole S A, for instance, trimmed its position in the company by 17.9% during the first quarter, while other institutional investors like MetLife Investment Management LLC, MML Investors Services LLC, Stifel Financial Corp, and Price T Rowe Associates Inc. MD have significantly boosted their positions [1].

Despite the expansion and positive projections, Robinhood Markets faces challenges such as regulatory scrutiny and the need to maintain its innovative edge. The company's ability to navigate these challenges and continue its growth trajectory will be crucial for its long-term success.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-credit-agricole-s-a-decreases-position-in-robinhood-markets-inc-hood-2025-08-25/
[2] https://www.marketbeat.com/instant-alerts/robinhood-markets-inc-hood-2025-08-25/