Robinhood Set for Record Q2 Volumes, Truist Keeps $100 Target as Meta App Looms
HOOD•Truist maintained its Buy rating and $100 target after June’s equities, options and prediction market volumes set pace for a record quarter, projecting double-digit transaction revenue upside and high-single-digit total revenue growth. Meta Platforms’ internal “Arena” prediction market app plans prompted around a 1% intraday share dip for Robinhood, intensifying competition.
1. Truist Maintains Buy Rating
Truist Securities reiterated its Buy rating and $100 target after June’s equities, options and prediction market volumes are on pace for a record quarter, projecting double-digit transaction revenue upside and mid- to high-single-digit total revenue growth. The firm also attributed a recent 1–2 point premarket share dip to uncertainty around the company’s convertible note issuance and related arbitrage.
2. Other Analyst Price Targets and Cost-Cutting
Cantor Fitzgerald raised its price target to $130, citing growth drivers such as the Rothera launch and increased prediction market activity from the upcoming FIFA World Cup, while Argus lifted its target to $110 and pointed to Robinhood’s recent 10% workforce reduction to improve efficiency.
3. Competition Intensifies from Meta’s Arena App
Meta Platforms is developing an internal prediction market app called Arena, using a points-based system with potential future real-money wagers and tapping its 3.5 billion daily users. News of Arena’s development triggered about a 1% intraday share decline for Robinhood, underscoring heightened competition in the space.
