Robinhood Stock Price Rebounds 23% on Record Earnings

Key Insights

• Robinhood stock price rebounds 23% from $72 low after record earnings.
• Crypto revenue dropped 38%, but prediction markets grew 322% in Q4.
• Stock needs $88.49 close to open the road toward $108 and beyond.

Robinhood (HOOD) stock price bounced 23% after touching $72 earlier this month. Right around that same time, the company dropped its full-year numbers.

Best year in company history. $4.5 billion in revenue. Up 52% from last year. Yet the stock stays 27% below where it was a month ago. Something does not add up. One price level now holds the answer.

Robinhood (HOOD) Stock Price Climbs on Record Earnings

Numbers came out on Feb. 10, and most of them were good. Robinhood brought in $4.5 billion for the full year, and earnings per share hit $2.05.

Never been higher. Customer assets on the platform reached $324 billion. That is 68% more than the year before. People are not leaving. They are putting more money in.

Options trading grew 41% compared to last year. Stock trading grew 54%. Robinhood now sits at number one for options trading volume in the US. Gold, the company’s paid membership plan, added subscribers fast. 4.2 million people now pay for it. That is 58% more than last year.

Something newer caught everyone’s attention, though. Prediction markets. These let users place contracts on real-world events like sports games or elections. That business grew 322% in one year. Just in Q4, it brought in $147 million. Management has never seen any product grow that fast inside the company.

One number went the wrong way. Crypto trading revenue for Robinhood (HOOD) came in at $221 million for the quarter. That is 38% less than the same period last year.

Because of that one weak number, total quarterly revenue landed at $1.28 billion. Analysts were expecting $1.33 billion. Stock dropped after hours when that miss came out.

Robinhood Sees Only Weak Link in Crypto

Crypto used to drive a big chunk of Robinhood’s business. When Bitcoin and Ethereum trading slows down, Robinhood notices it faster than most. That is what happened here.

But look at everything else. Options are up. Stocks are up. Subscriptions are up. Prediction markets are exploding. The company clearly does not need crypto to grow anymore. Two years ago, that was not true. Now it is.

Year on year, Robinhood (HOOD) stock price sits 52% higher. Most of those gains held through the recent monthly selloff. Long-term buyers are still ahead.

More than 10 Wall Street analysts cover the stock. All say, Buy. The average price target sits at $147. Mizuho has it at $172. Bernstein at $160. Wolfe Research just upgraded it on February 9 with a $125 target.

This Level Decides Robinhood Stock Price Next

After bouncing from $72, the Robinhood stock price sits at $85.60. The bounce was real. But the next move needs confirmation.

$88.49 is the number. A daily close for HOOD stock above that, and the stock opens up toward $108. After $108, the road toward $139 and higher gets much clearer. That path puts analyst targets within reach.

Losing $72 tells a different story. Below that HOOD stock price level, $62 comes first, and then $54. Those drops would hurt badly and erase most of what the recent bounce built.

Record earnings give the fundamental case for higher prices. But the Robinhood stock price still needs that $88.49 close to show buyers mean business.