Robinhood’s Strategic Growth Gains Momentum with New Analyst Backing

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The investment platform Robinhood is aggressively advancing its business expansion, receiving fresh Wall Street endorsement for its strategy. On Wednesday, December 17, 2025, Truist Financial commenced coverage of the company's shares with a "Buy" recommendation, setting a price target of $155. This move coincided with an announcement from CEO Vlad Tenev detailing a major enlargement of the firm's prediction markets division, an area management has pinpointed as a core future growth pillar.

Underpinning the bullish sentiment are robust financial results. For the third quarter of 2025, Robinhood reported earnings per share of $0.61, substantially surpassing the $0.41 consensus estimate. Revenue reached $1.27 billion, marking a 100% year-over-year increase. The company has successfully broadened its revenue streams, notably through its Robinhood Gold subscription service and interest-based income.

However, significant insider selling has occurred alongside these gains. Over the preceding 90 days, company insiders disposed of approximately 3.69 million shares, with a total value around $476 million. Following a share price surge of more than 200% since the start of the year, these transactions are widely viewed as profit-taking, though their scale is notable.

Analyst Perspectives and Price Targets

Market experts see further upside potential. Truist analyst David Smith based his optimistic stance on sustained momentum, noting Robinhood has delivered revenue growth exceeding 50% in each of the past two years. He forecasts annual growth of approximately 20% for the coming years. His $155 price objective suggests an upside of roughly 30% from recent levels near $119.

This view is echoed, and even exceeded, by Mizuho Securities. Analyst Dan Dolev reaffirmed his "Buy" rating, attaching a more ambitious price target of $172. Both assessments sit well above the current consensus price target of $137.25.

Prediction Markets: A "Supercycle" Opportunity

Central to the growth narrative is the rapid scaling of prediction markets. Robinhood revealed plans to integrate thousands of new live events onto its platform, including sports wagering and player-specific propositions. CEO Tenev characterized this sector as being at the dawn of a "supercycle," with the potential to handle trillions of contracts annually.

Analysts at Mizuho note that Robinhood's diversified ecosystem—spanning traditional equities, options, cryptocurrencies, and now event-based trading—provides a structural edge. They believe the company is better positioned than rivals such as Coinbase to capture market share in this emerging segment.

Outlook and Prevailing Risks

From a technical perspective, the stock has moved significantly above its 52-week low of $29.66. A sustained break above the $125 level is seen as crucial for opening a path toward the higher price targets set by Truist and Mizuho.

Key risks remain, primarily centered on regulatory uncertainties surrounding new prediction market products and potential volatility within the cryptocurrency sector. These factors continue to be critical considerations for investors monitoring Robinhood's accelerated expansion.