JPMorgan has raised its price target for Robinhood Markets
Inc. (HOOD) to $98 by 2026, doubling its previous forecast of $47 for 2025. The
upward revision reflects expectations of long-term growth from the trading
platform’s recent moves in crypto and tokenized finance.
The new price target comes ahead of Robinhood’s
second-quarter earnings report, which is due Wednesday after the market close. Analysts
expect the firm to post earnings per share of $0.31, up from $0.21 a year
earlier, according to FactSet. Transaction-based revenue is projected to hit
$515 million.
Crypto Revenue Expected to Double Year-Over-Year
Crypto trading revenue is forecast to reach $169.3 million
for the quarter, more than double the $81 million recorded in the same period
last year, Coindesk reported. However, the figure is well below the $247 million seen in Q1,
underscoring the company’s exposure to fluctuations in digital asset trading
volumes.
The bank highlighted Robinhood’s $200 million acquisition of Bitstamp, finalized in June, as a key driver of future growth. The deal
provides Robinhood with a fully licensed European crypto exchange and supports
its expansion into the EU market.
Bitstamp is now part of @RobinhoodApp Together, we’re combining 14 years of trusted crypto expertise with Robinhood’s global vision – expanding access and building the future of crypto, together.More here 👇https://t.co/Po2NxE971C
— Bitstamp by Robinhood (@Bitstamp) June 2, 2025
Robinhood began offering tokenized stock trading in the European Union earlier this month under the region’s new MiCA regulations. Users
can now trade more than 200 tokenized stocks and ETFs, with plans for 24/7
trading once Bitstamp’s order book is integrated.
Private Market Access and U.S. Regulatory Shifts in Focus
Robinhood also plans to give EU users tokenized exposure to
private companies such as OpenAI and SpaceX. The firm said this will provide
access to traditionally restricted investments and could enable future
decentralized finance applications. Shares of Robinhood have risen 170% since the start of the
year. The stock was recently down 0.7% at $105.95 in Tuesday trading.
Wall Street began the week with optimism, pushing the
S&P 500 and Nasdaq 100 to new all-time highs, as investors welcomed
progress on key trade fronts. But that momentum faded by the close, with the
Dow ending slightly lower and broader indexes giving back early gains as
Treasury markets stirred investor unease.
Trade Deals Fuel Early Market Gains
According to Barchart, Markets climbed Monday following news
that the United States and the European Union reached a trade agreement. Under
the deal, most EU exports will face a 15% tariff—substantially less than the
50% rate previously threatened by President Trump.
That development, coupled with a report from the South China
Morning Post suggesting the US and China are set to extend their tariff truce
for another 90 days, injected early optimism across equity markets.
Read more: This Bitcoin Price Prediction Suggests BTC Will Hit $200K in 2025
The Nasdaq 100 rose 0.36%, outperforming major indexes,
while the S&P 500 eked out a modest 0.02% gain. The Dow Jones Industrial
Average dipped 0.14%.
Bond Market Pressures Weigh on Equities
The rally lost steam in the afternoon after a weak $70
billion auction of 5-year Treasury notes pushed bond yields higher. That
prompted a wave of long liquidation in equities, especially as rising yields
typically dampen the appeal of riskier assets like stocks.
The bond market also reacted to the US Treasury’s revised
borrowing estimate for the third quarter, which jumped to $1.01 trillion—nearly
double its April forecast. Investors now anticipate a surge in government debt
supply, potentially increasing upward pressure on yields. Amid the trade-driven
swings, markets also responded to positive economic data.
This article was written by Jared Kirui at www.financemagnates.com.
