Predictions for Fintech and Streaming Growth Over the Next Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy HOOD?
Source: Fool
- Robinhood Market Performance: Robinhood's stock has more than doubled in the past year, with Q3 revenue reaching $1.27 billion, a 100% year-over-year increase, and net income soaring 271% to $556 million, indicating strong growth momentum that is expected to attract young investors over the next decade.
- Investment Account Growth: The number of investment accounts at Robinhood is steadily improving, and despite a forward P/E ratio of 38.7 suggesting potential volatility, its brand power and expanding service portfolio are likely to support long-term performance.
- Roku's Market Leadership: Roku leads the connected TV market, boasting over 90 million households and supporting tens of billions of viewing hours annually, with streaming accounting for 47.5% of total TV viewing time in the U.S., indicating a strong growth trajectory for advertising revenue.
- Advertising Tool Innovations: Roku has launched new advertising tools, including a self-serve ads platform introduced in 2024, and is implementing AI-based initiatives to facilitate ad creation, enhancing its competitive edge and positioning for robust growth over the next decade.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 72.680
Low
130.00
Averages
156.24
High
181.00
Current: 72.680
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Earnings Expectations: Analysts forecast Robinhood's Q4 2025 earnings per share at $0.63, reflecting a 16% increase from the previous year, indicating ongoing improvements in profitability that may attract more investor interest.
- Significant Revenue Growth: The company is expected to report quarterly revenue of $1.33 billion, a 31.7% increase from last year's $1.01 billion and a 4.7% rise from Q3, showcasing its competitive position and business expansion capabilities.
- Market Sentiment Shift: Short interest in Robinhood shares has decreased from 36.51 million to 33.86 million, representing only 4.45% of the company's float, suggesting a reduction in bearish sentiment that could support the stock price.
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- Strong Earnings Expectations: Analysts forecast Robinhood's Q4 2025 earnings per share at $0.63, reflecting a 16% increase from the previous year, indicating ongoing improvements in profitability that may attract more investor interest.
- Significant Revenue Growth: The company is expected to report quarterly revenue of $1.33 billion, a 31.7% increase from last year's $1.01 billion and a 4.7% rise from Q3, showcasing its competitive position and business expansion capabilities.
- Market Sentiment Shift: Short interest in Robinhood shares has decreased from 36.51 million to 33.86 million, representing only 4.45% of the company's float, suggesting a reduction in bearish sentiment that could support the stock price.
- Cryptocurrency Revenue Contribution: Notably, 36% of Robinhood's transaction-based revenue in Q3 came from cryptocurrencies, a figure that has steadily increased over recent quarters, highlighting the company's adaptability in emerging markets and future growth potential.
See More
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- Oracle Stock Rise: Oracle shares increased by 2% after DA Davidson upgraded its rating from neutral to buy, with analysts believing that a revamped OpenAI will regain its position as Google's top competitor, enhancing collaboration potential with Oracle.
- STMicroelectronics Partnership Expansion: STMicroelectronics saw a 7% stock increase following a multi-billion-dollar partnership announcement with Amazon Web Services to support infrastructure for cloud and AI data centers, which is expected to drive future revenue growth for the company.
- Kroger CEO Transition: Kroger's shares jumped nearly 5% after the Wall Street Journal reported that former Walmart executive Greg Foran will be appointed as the new CEO, indicating a potential strategic shift that could enhance the company's performance in a competitive retail market.
- Hims & Hers Health Crisis: Hims & Hers stock plummeted 18% after it withdrew its copycat weight-loss pill following legal threats from Novo Nordisk, highlighting the importance of intellectual property in the market and potentially impacting Hims & Hers' future product strategy.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
AI Drives Investment Opportunities in AppLovin and Robinhood
- AI Technology Transformation: Analysts widely believe that artificial intelligence will be the most transformative technology of the next decade, with its economic impact expected to rival that of the internet, and its adoption rate significantly outpacing that of the internet, indicating strong market potential.
- AppLovin Investment Outlook: AppLovin's Axon ad engine leverages AI to match advertiser demand with publisher supply, with adjusted earnings expected to grow at 48% annually over the next three years; the current P/E ratio of 51 times appears reasonable, and analysts' target price of $771 per share implies an 89% upside.
- Robinhood Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories through payment for order flow and other revenue streams, with adjusted earnings projected to grow at 20% annually over the next three years; the current P/E ratio of 34 times is sensible, and analysts' target price of $152 per share suggests an 81% upside.
- AI Tool Innovation: Robinhood's AI investment tool, Cortex, provides real-time data analysis for Gold subscribers, helping users understand stock price movements, with the CEO stating the goal is to offer users a world-class financial team, further enhancing its appeal among younger investors.
See More
AI Revolutionizes Advertising Industry with Major Stock Upside Potential
- AppLovin AI Engine: AppLovin's AI recommendation engine, powered by Axon technology, enables advertisers to target campaigns effectively, with adjusted earnings expected to grow at 48% annually over the next three years, making the current 51 times earnings valuation appear reasonable and highlighting its strong growth potential in the advertising market.
- Return on Ad Spend: AppLovin delivers a 45% higher return on ad spend (ROAS) than Meta and a 115% higher ROAS than platforms like YouTube and TikTok, indicating the effectiveness of its advertising technology and solidifying its leadership position in the rapidly evolving digital advertising space.
- Robinhood AI Tool: Robinhood's AI investment tool, Cortex, leverages real-time data and analysis to assist users in making informed investment decisions, with adjusted earnings projected to grow at 20% annually over the next three years, showcasing its strong appeal among younger investors.
- Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories, particularly among millennials and Gen Z, boasting twice the customer base of its closest competitor, which is expected to further drive revenue growth and enhance its market position.
See More
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- Market Sentiment Improvement: The CNN Money Fear & Greed Index rose to 45 on Friday, entering the 'Neutral' zone from a previous reading of 34.2, indicating a significant improvement in market sentiment that could boost investor confidence.
- Dow Jones Surge: The Dow Jones Industrial Average jumped over 1,200 points during Friday's session, closing at 50,115.67 and marking its first breach of the 50,000-point milestone, showcasing a strong market rebound that may attract more capital inflows.
- S&P 500 Strong Performance: The S&P 500 rose by 1.97% to close at 6,932.30, with sectors like industrials, energy, and information technology recording significant gains, reflecting positive signals of economic recovery that could drive corporate earnings growth.
- Consumer Confidence Boost: The University of Michigan's consumer sentiment index increased by 0.9 points to 57.3 in February, surpassing market estimates of 55, indicating enhanced consumer confidence in the economic outlook, which may stimulate consumer spending and economic growth.
See More
