Analysts Remain Bullish on Robinhood After Strong Stock Rally

NEW YORK, NY — September 3, 2025 — Analysts are expressing confidence in Robinhood Markets, Inc. as the company’s stock has skyrocketed by 115% over the past six months, now trading at $101 per share.

According to the average brokerage recommendation, the stock holds an Average Brokerage Recommendation (ABR) of 1.82 on a scale of 1 to 5. This rating indicates a range between Strong Buy and Buy, with 13 out of 22 brokerage firms advising for a Strong Buy, while two recommend a Buy.

Despite the positive outlook and the ABR suggesting a buying opportunity, experts caution investors against making decisions solely based on these ratings. Historical trends show that brokerage recommendations may not effectively predict future stock performance.

Brokerage analysts often have vested interests that can lead to biased ratings. Our findings illustrate that for every one Strong Sell recommendation, there are five Strong Buys issued by analysts, potentially misleading investors.

In contrast, the Zacks Rank offers a more reliable prospective measure, successfully indicating stock price movements based on earnings estimate revisions. Robinhood’s Zacks Rank sits at #1 (Strong Buy), fueled by a recent 1.9% increase in the Zacks Consensus Estimate for the current year to $1.55 per share.

This uptick highlights a shift in confidence among analysts regarding Robinhood’s earnings potential, driven by strong operational metrics and user engagement. The company’s ability to monetize its platform has significantly improved, with average revenue per user rising 40.9% over the last two years.

Analysts attribute the surge in Robinhood’s prospects to users actively engaging with the platform and increasing transaction levels, which has been beneficial for revenue generation.

Moreover, Robinhood’s financial turnaround is notable; it transformed from posting losses years ago to now showing positive earnings per share. This transition, along with a customer base growth and high free cash flow margins, sets Robinhood apart in the financial services industry.

Trading fees are relatively low-maintenance once the platform is in place. The current enterprise valuation reflects the strong performance, trading at 43.2 times its forward enterprise value to EBITDA, indicating investor willingness to pay premiums for its growth.

Overall, the bullish sentiment surrounding Robinhood is supported by substantial improvements in revenue, earnings, and cash flow metrics. Analysts note that as more forecasters increase their expectations for earnings, it frequently signals good business performance moving forward.

Robinhood’s expanding user base and enhanced per-user metrics have contributed significantly to the company’s positive outlook in the competitive fintech space.