Robinhood Soars 5% as Compass Point Sets Bold $161 Price Target
Robinhood rockets higher after analyst upgrade signals renewed confidence in trading platform's trajectory.
The Bull Case Strengthens
Compass Point's aggressive $161 target represents significant upside potential from current levels, triggering a 5% surge in after-hours trading. The move suggests institutional faith in Robinhood's ability to capitalize on the ongoing retail trading revolution.
Platform Evolution Accelerates
While traditional brokers scramble to keep pace, Robinhood continues expanding its crypto offerings and zero-commission structure—proving that sometimes the 'free' trading app understands market dynamics better than Wall Street's overpaid analysts.
Market Sentiment Shifts
This upgrade comes as more investors recognize that democratized trading platforms aren't just passing trends but fundamental shifts in how capital flows through markets. The 5% pop merely hints at the underlying momentum building beneath the surface.
Prediction markets bring surprise revenue
According to Engel, Robinhood’s prediction market feature (launched earlier this year) is exploding. “We forecast HOOD generating ~$20m in revenue from prediction markets in 3Q, which is up over 100% QoQ,” he wrote.
These “event contracts” let users bet on just about anything: sports, politics, or market events. Robinhood charges $0.01 per contract, and it’s raking in volume.
Robinhood CEO Vlad Tenev posted last month on X that over 4 billion contracts have been placed on the platform so far, and more than 2 billion of them were just in Q3.
That means Robinhood may have already made around $40 million just from this feature. Engel believes Q4 will go even harder because the NFL season is fully underway. “We model HOOD’s 4Q prediction reaching ~$50m alongside a full quarter of NFL season,” he added.
And this isn’t slowing down. Engel says the market is undervaluing Robinhood’s crypto segment, too. Specifically, he sees staking revenue and fee increases playing a bigger role in the coming quarters.
“We don’t believe the Street is accurately forecasting HOOD’s 2H25 or 2026 crypto revenue, which includes higher fee rates and staking revenue,” he warned.
Crypto fees and trading volumes keep rising
Robinhood’s crypto business is showing new life. Staking (where users lock in their tokens in exchange for a reward) is acting like a yield engine.
Add that to increased trading activity and higher fee rates, and you’ve got a formula for long-term gains, whether Wall Street’s paying attention or not.
Robinhood reports earnings next Wednesday after market close. Right now, 20 analysts rate the stock a Buy, 8 say Hold, and only 1 thinks it’s a Sell.
Notably, Robinhood is up over 250% year to date, and last month, it was added to the S&P 500. That’s a big credibility MOVE in the eyes of institutional investors.
The broader market was also on fire Monday. The S&P 500 gained 1.1%, the Nasdaq ROSE 1.7%, and the Dow added 244 points.
That’s partly because U.S. and China cooled off trade tensions over the weekend. Both TRUMP and Xi are now on track to announce a deal this week.
Nvidia, Broadcom, and other chipmakers were leading the rally, each up more than 2%. Tesla added 5%, while Apple inched closer to a $4 trillion market cap. Qualcomm went up over 12% after showing off its new AI chips, and tech earnings are coming fast.
Alphabet, Amazon, Apple, Meta, and Microsoft are all reporting this week. And traders are watching the Federal Reserve, which is expected to cut interest rates on Wednesday after inflation data came in cooler than expected last week.
Get $50 free to trade crypto when you sign up to Bybit now
