Robinhood’s Q2 Performance Fails to Convince Wall Street Despite Crypto Gains

Robinhood's second-quarter earnings surpassed expectations, yet Wall Street remains cautious. The trading platform's stock edged up slightly to $106.50 after reporting $160 million in crypto revenue—16% of its total—driven by $6.7 billion in trading volume from its Bitstamp acquisition. Analysts acknowledge the strong performance but warn of limited upside, with Citi and JPMorgan maintaining neutral ratings.

Crypto trading rebounded sharply, particularly through Bitstamp, contributing to revised EPS estimates for the next three years. Despite the 420% year-over-year stock surge, firms like Keefe, Bruyette & Woods cite priced-in growth as a barrier to further bullish momentum. Robinhood's dual strength in equities and crypto underscores its niche, yet skepticism lingers.