Robinhood Markets Inc (NASDAQ:HOOD) shares are moving higher on Thursday after Needham raised its price target on the stock while maintaining a Buy rating. Here’s what you should know.
- Robinhood Markets shares are powering higher. What’s behind HOOD gains?
Needham Raises Price Target
Needham analyst John Todaro raised his price target on Robinhood to $97 from $85, keeping a Buy rating, after the company’s May metrics showed acceleration across equities and event contracts. The new target is based on a 27x multiple on Needham’s discounted FY2027 EV/EBITDA estimate.
Todaro said Robinhood is positioned to benefit from improving crypto regulation and is gaining ground in equities and options through more advanced trading tools. He expects the company to roll out new crypto products in 2026 aimed at retail users, which could help Robinhood take share from both centralized and decentralized competitors.
Combined with a stronger equity and options platform and a more competitive margin product, Todaro sees Robinhood moving closer to a full financial services hub.
Higher Estimates Across Most Segments
The only area Needham trimmed Robinhood forecasts on was crypto, where volumes have softened as retail traders shift toward AI‑linked equity trades. Even so, the firm said Robinhood benefits more from active equity and prediction markets, which remain strong.
The key story in the note is a split picture: equities, options and prediction markets are all trending stronger, while crypto volumes are declining as retail investors rotate into AI-driven equity trades. Todaro views this as a net positive for Robinhood since the platform benefits from active trading broadly, not just crypto.
On estimates, Needham lifted its second-quarter 2026 revenue view to nearly $1.27 billion from $1.18 billion, driven by higher transaction and net interest revenues. Full-year 2026 and 2027 revenue estimates were also raised to approximately $5.07 billion and $6.02 billion, respectively.
Longer-term, Todaro continues to view Robinhood as the furthest along in building a “financial super app,” with prediction markets and tokenized assets seen as increasingly significant growth drivers.
He outlined three possible paths for the stock.
- Bear case: The bitcoin rally fades, equity markets weaken especially in meme and tech names, crypto regulation disappoints and a 23x multiple applies
- Bull case: A strong crypto cycle returns, equities rise on rate cuts and Robinhood expands its crypto lineup, supporting a 32x EV EBITDA multiple
- Base case: About 10% revenue growth in 2026 with a supportive regulatory backdrop and retail traders returning, which aligns with the current 27x multiple
Critical Levels To Watch for HOOD Stock
Robinhood continues to show strength in the short-term trend. The stock trades 8.7% above its 20‑day simple moving average at $81.42 and 11.5% above its 50‑day simple moving average at $79.32. That positioning shows buyers have been stepping in on dips and keeping momentum pointed higher. The 20‑day simple moving average also sits above the 50‑day simple moving average, which confirms that the shorter‑term trend has improved since the spring.
The longer‑term structure is not fully aligned yet. Robinhood remains 14.1% below its 200‑day simple moving average at $102.96, and the 50‑day simple moving average is still below the 200‑day simple moving average after the death cross that formed in February. This setup often means rallies can continue, but they may face heavier supply as price approaches longer‑term reference points.
Momentum supports the recent advance. MACD is above its signal line and the histogram is positive, which signals that upside pressure is building again after the prior downswing. When MACD holds above the signal line, it usually reflects sellers losing influence while buyers gain control.
The next test on the upside is whether Robinhood can keep pushing through the May swing‑high region. Breakouts that fail to hold above that zone can reverse quickly, so traders often watch that area closely. On the downside, the March swing low remains the key level for the current recovery, especially after the stock slipped under support in April.
- Key Resistance: $93.50 — a nearby pivot where rallies have stalled before and where sellers may reappear
- Key Support: $73.00 — a prior demand zone that sits well below current price and marks an area buyers defended earlier
HOOD Shares Are Climbing
HOOD Price Action: Robinhood shares were up 5.38% at $91.01 at the time of publication on Thursday, according to Benzinga Pro.
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