Robinhood's equities, options and prediction market volumes in June are on pace for records, implying double-digit upside to Q2 transaction revenues and mid-high single-digit total Q2 revenue growth. Analysts lifted targets to $100-$130 as Robinhood navigates a convertible note raise and 10% staff cut while facing Meta's Arena competition.
Equities, options and prediction market volumes in June are on pace for record highs, projecting double-digit increases in transaction revenues and mid-to-high single-digit growth in total Q2 revenues.
Truist Securities reiterated a Buy rating with a $100 target, while Cantor Fitzgerald and Argus raised theirs to $130 and $110 respectively, citing strong volume trends and upcoming product catalysts.
Last week's convertible note issuance and a 10% workforce reduction aim to bolster the balance sheet and improve operational efficiency.
Meta Platforms' upcoming 'Arena' prediction market app, leveraging its 3.5 billion daily user base, could intensify competition for Robinhood's event contract offerings.
