Robinhood Delivers Strong Q2, But Wall Street Stays Measured

Robinhood (HOOD) posted solid second-quarter results late Wednesday, prompting several Wall Street firms to revise their price targets upward — though none issued a ratings upgrade, signaling caution despite the stock’s explosive rally in recent months.

The stock traded modestly higher at $106.50 early Thursday, extending gains that have seen it nearly triple from April lows and rise over 420% year-over-year.

Muted Upgrades Reflect Valuation Concerns

Citi raised its price target from $100 to $120 while maintaining a neutral rating. Analyst Christopher Allen, even after sharply increasing earnings projections, warned that Robinhood’s current valuation already factors in much of its expected growth.

JPMorgan echoed the cautious optimism, upping its December 2026 price target to $104 from $98. Analyst Kenneth Worthington described the quarter as “nearly perfect,” benefiting from favorable market conditions, strong retail participation, and elevated interest rates. Crypto played a key role, with $160 million in revenue — about 16% of the total — driven by $6.7 billion in trading volume from the newly acquired Bitstamp exchange.

Keefe, Bruyette & Woods also kept its neutral stance, increasing its target to $106 from $89. The firm highlighted gains in securities lending and a rebound in crypto trading, particularly from institutional volumes at Bitstamp. Analysts there also raised EPS estimates through 2027, citing better margins and increased user activity.

Only One Bull Among Analysts

Cantor Fitzgerald’s Brett Knoblauch stood alone with a bullish view, maintaining a buy rating and boosting his target to $118 from $100. He values Robinhood at 40x 2026 EV/EBITDA and sees upside in crypto, options trading, and margin interest. Knoblauch pointed to strong product momentum in areas like Robinhood Strategies, staking, and the soon-to-launch Robinhood Banking platform.

Implications for Coinbase’s Earnings

Robinhood’s crypto gains came not only from institutional flow via Bitstamp but also from rising retail engagement — a trend that, if echoed by Coinbase (COIN), could signal a broader market recovery.

Coinbase, however, remains far more exposed to crypto price action and lacks Robinhood’s diversified revenue streams such as interest income and securities lending. That puts the onus on Coinbase to deliver strong trading volumes to support growth.

FactSet estimates COIN will report $1.59 billion in Q2 revenue and $1.25 EPS — both year-over-year increases. The stock was up 1.6% Thursday, trading at $383.56 ahead of earnings.