MENLO PARK, California, September 1, 2026, 04:52 EDT — Robinhood shares advanced 2.7% on Tuesday after Morgan Stanley raised its price target for the stock to $150, pointing to the company’s product expansion as a key driver.
- Robinhood shares were at $107.62 as of 04:52 EDT, rising 2.7% compared to the previous session’s close on Monday.
- Morgan Stanley upgraded the stock to Overweight and increased its price target to $150.
- The revised target suggests a 39.4% increase, translating to approximately $38.1 billion in additional equity value.
- Event-contract trading volume in July increased by 20 times compared to a year earlier, as crypto trading volume dropped 62%.
Robinhood Markets, Inc. NASDAQ:HOOD gained 2.7% in premarket trading on Tuesday. Morgan Stanley NYSE:MS lifted its rating on the stock to Overweight, assigning a $150 price target upgrade details. Shares advanced to $107.62 as of 04:52 EDT latest quote.
The target represents a 39.4% potential gain from the premarket price. It also suggests an additional $38.1 billion in equity value. This calculation is based on Robinhood’s closing market capitalisation and assumes the share count remains unchanged.
Michael Cyprys, an analyst, raised his price target to $150 from $124. His argument focuses on driving higher assets and engagement from current clients instead of depending chiefly on new account creation reported analysis.
Robinhood holds most of the upgrade gain
Five-minute prices: Yahoo Finance. As of . Delayed feeds can revise.
In July, Robinhood’s number of funded customers stood at 28.5 million. The platform’s total assets increased 19% year over year to $355 billion, according to July operating data.
In July, net deposits stood at $5.6 billion, representing an 18% annualised rate compared to assets in June. Robinhood noted that the most recent monthly numbers are preliminary.
Morgan Stanley’s target adds $26 per share
The upgrade widens the indicated return from 15.2% to 39.4%.
Rating and targets: StreetInsider. Price: Yahoo Finance. Value figures are estimates based on the $94.23 billion closing market capitalisation.
The premium begins from a high starting point. Robinhood ended the session valued at $94.23 billion, trading at a price-earnings ratio of 46.35 Google Finance. The latest target suggests a projected valuation of $134.9 billion.
Net revenue for the second quarter increased by 32% to $1.31 billion. Net income climbed 48% to $573 million. Diluted earnings were $0.62 per share quarterly results.
Trading still supplies most revenue
$1.31 billion total net revenue, up 32% year over year
Source: Robinhood Q2 2026 results. Components may not sum because transaction revenue includes smaller lines.
Transaction revenue led with $776 million. Options accounted for $342 million. Event contracts generated $156 million, and crypto delivered $100 million.
July’s performance was similarly mixed. Event-contract volume hit 6.1 billion, a number roughly 20 times higher than a year earlier. Equity volume climbed by 59%, while crypto volume declined by 62% monthly metrics.
Chief Financial Officer Shiv Verma stated, “The business is firing on all cylinders.” He highlighted record revenue figures and expanded overall activity. Robinhood reported that 13 of its business lines are now generating more than $100 million in annualised revenue.
Risks: The current valuation offers limited buffer against softer cross-selling. Platform assets in July declined by 4% compared to June. Regulatory developments, interest rates, and trading activity may rapidly impact revenue.
The Nasdaq’s normal trading session starts at 09:30 EDT. Investors will assess if the premarket advance persists. Attention will also be on whether product variety continues to support Robinhood’s $187 revenue per user for the quarter, marking a 24% increase from a year ago.
Related articles: NASDAQ:HOOD
