California-based Robinhood Markets, Inc. (HOOD) is a top financial services company and technology platform, best known for pioneering commission-free trading of stocks, ETFs, options, and cryptocurrencies. With a market cap of $107.5 billion, the company targets retail investors, offering a mobile-first platform designed to make investing accessible, simple, and low-cost.
Companies worth $10 billion or more are generally described as "large-cap stocks." Robinhood fits this bill perfectly. Robinhood generates revenue through payment for order flow (PFOF), interest on uninvested cash, margin lending, and subscription services such as Robinhood Gold. The platform emphasizes ease of use, educational tools, and gamified experiences to attract younger investors.
HOOD touched its 52-week high of $153.86 on Oct. 6 and is currently trading 22.3% below that peak. The stock has surged 3.9% over the past three months, outpacing the Financial Select Sector SPDR Fund’s (XLF) 2.1% return during the same time frame.
Robinhood has notably outperformed over the longer term. HOOD stock has soared 220.7% on a YTD basis and 203.8% over the past year, compared to the XLF’s 13.7% gains in 2025 and 10.8% returns over the past 52 weeks.
HOOD stock has been trading above the 200-day moving average for the past year and has dipped below its 50-day moving average since early November.
On Dec. 10, Robinhood shares dropped 9.1% after the company reported weak November 2025 operating data, including a 37% decline in equity trading volumes, a 28% drop in options, and a 12% fall in crypto activity. Funded customers also decreased, partly due to the removal of roughly 280,000 low-balance accounts. The decline was compounded by a cease-and-desist order from Connecticut’s Department of Consumer Protection over alleged unlicensed online gambling activities, prompting analysts at Bank of America Securities and Cantor Fitzgerald to lower their price targets for the stock.
Robinhood has outperformed its peer, Morgan Stanley (MS), which posted 41.9% gains in 2025 and 39.5% returns over the past 52 weeks.
Among the 22 analysts covering the HOOD stock, the consensus rating is a “Moderate Buy.” Its mean price target of $154.16 suggests a 29% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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