Robinhood Markets Inc (NASDAQ: HOOD) has had a staggering 150% rally over the past three months that’s pushed its market cap well past $73 billion.
Once dismissed as a meme-stock darling, HOOD is now being re-evaluated as a serious contender in the fintech space, thanks to a potent mix of product expansion, crypto tailwinds, and a dramatic turnaround in profitability.
Still, ERShares chief investment strategist Eva Ados remains fully convinced that Robinhood stock could extend its gains further in the back half of 2025.
What could drive further upside in Robinhood stock?
According to Eva Ados, her firm now has Robinhood Markets as “one of our biggest weights” in the XOVR exchange-traded fund (ETF).
She’s constructive on HOOD shares primarily because “it’s not just a brokerage anymore, it offers retirement accounts, private banking, credit cards – it’s become a comprehensive financial platform.”
Robinhood’s latest reported quarter supports that narrative as well. The fintech saw its revenue pop some 50% on a year-over-year basis to $927 million in Q1 as net income more than doubled to $336 million.
Transaction-based revenues, especially from crypto and options, led the charge, while operating expenses remained disciplined.
Adjusted EBITDA surged 90% to $470 million, reflecting a margin of 51%.
That said, Robinhood stock does not currently pay a dividend.
HOOD shares could benefit from crypto momentum
A sharp increase in crypto trading has been the driving force behind much of HOOD’s momentum in 2025, and it will remain one for the fintech stock moving forward, argued Eva Ados on CNBC.
In Q1, the financial services company generated $252 million in crypto transaction revenue, up some 100% on a year-over-year basis.
However, this echoes the 2021 boom, when crypto accounted for more than half of Robinhood’s transaction revenue, only to collapse the following year – a déjà vu that has some analysts cautious.
While the crypto rebound in late 2024 helped drive Robinhood’s growth, tokens like Dogecoin and Shiba Inu have since fallen over 60% from their highs.
If the enthusiasm fades again, HOOD’s top-line growth could face pressure.
Still, the company is hedging its bets. It’s expanding into retirement products, launching a Gold Card, and integrating TradePMR to attract RIAs.
Gold subscriptions have nearly doubled year-over-year to 3.2 million, and net deposits hit a record $18 billion in Q1.
Robinhood is not an inexpensive stock to own
Robinhood stock is currently going for a forward price-to-earnings multiple of about 48, which, according to some analysts, means it’s priced for perfection.
Wall Street currently has a consensus “overweight” rating on HOOD stock, but the mean target of $70 on it indicates potential downside of more than 15% from current levels.
But none of it matters much for Eva Ados. What’s more important is that the trading platform is no longer just used by Gen Z or Millennials but by “many older people too, and we see that growing from here.”
In short, Robinhood shares are already trading at a premium valuation – but there sure are a bunch of catalysts that, in the base-case scenario, could push HOOD up further from here.
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