Robinhood Reports Strong Q2 Earnings Amid Cautious Analyst Upgrades
Robinhood's second-quarter earnings exceeded expectations, prompting analysts to adjust their price targets while maintaining a cautious outlook. Key points include:
- Shares are trading at $106.50.
- Citi raised its price target to $120 from $100 but maintains a neutral rating, noting much growth is already priced in.
- JPMorgan increased its December 2026 target to $104 from $98, citing favorable market conditions and strong crypto revenue of $160 million, about 16% of total revenue.
- Keefe, Bruyette & Woods raised its target to $106 from $89, highlighting gains in securities lending and crypto trading.
- Cantor Fitzgerald's Brett Knoblauch is the only analyst with a buy rating, raising his target to $118, indicating potential for further growth in crypto and new products.
Implications for Coinbase's Earnings
Robinhood's performance may indicate trends for Coinbase, which reports earnings later today. Factors to consider:
- Robinhood’s crypto revenue benefited from retail traders returning to the market.
- If Coinbase shows similar engagement, it could lead to positive results.
- Coinbase's reliance on crypto trading makes it vulnerable without diversified income streams like Robinhood.
- FactSet estimates Coinbase will report $1.59 billion in revenue and $1.25 earnings per share for the second quarter.
- Coinbase shares are currently trading at $383.56, up 1.6% today.