Robinhood's (HOOD, Financial) stock is catching fire this morning, up 6.25% in pre-market trading, as investors gear up for the company's first-ever investor day. Barclays reaffirmed its $26 price target with an Equalweight rating, highlighting Robinhood's aggressive push into brokerage, crypto, and global markets. Investors are pumped to hear more about the company's plans, especially after its blockbuster Q3 results showed a 36% revenue spike to $637 million and adjusted EBITDA nearly doubling to $268 million. Add in the $300 million TradePMR acquisition—bringing $40 billion in assets under administration—and it's clear Robinhood isn't just playing defense; it's scaling like a rocket.
Wall Street is starting to take notice, with Morgan Stanley bumping its rating to Overweight and Needham upgrading to Buy. The buzz is building around Robinhood's expansion into Index Options, Futures, and its slick new desktop platform, "Robinhood Legend." Meanwhile, net deposits are growing at a high-30% annualized clip, boosting assets under custody and leaving investors wondering if the company can keep up the momentum. The question now is whether Robinhood's 2% revenue yield can hold steady and if management will finally pull back the curtain on its long-term profitability targets.
The stakes are high. With adjusted EBITDA margin goals hovering around 50%, Robinhood's investor day isn't just a corporate show—it's a chance to prove the company's growth isn't just a flash in the pan. Whether this 6.25% pre-market pop is just the start or a sugar rush will depend on whether Robinhood's strategy delivers on the hype. For now, investors seem to be betting big that this fintech trailblazer is ready to turn its bold moves into lasting gains.
