Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here?

Robinhood app on phone by Andrew Neel via Unsplash

Robinhood Markets (HOOD) has been soaring to new highs this year and has quietly become one of the market’s standout performers in 2025. The popular trading platform’s rally has been driven by a perfect storm of crypto resurgence, expanding financial products, and new crypto programs. In fact, its latest move of offering tokenized versions of over 200 U.S. securities to European users — including exchange-traded funds (ETFs) and even high-profile private firms like SpaceX — has drawn particular attention.

This marks the first time Robinhood has opened the door to tokenized private companies, made possible by the European Union’s more flexible investor regulations. As Robinhood's product suite expands, so too have its profits, signaling strong scalability in its business model. After notching a fresh high of $106.64 on July 17, HOOD stock still has momentum working in its favor. So, with shares hitting new heights, how should investors assess the opportunity from here?

Robinhood shook up the financial world by pioneering commission-free trading and opening the doors of the market to a new wave of everyday investors. The platform now offers trading across stocks, options, futures, and crypto, along with retirement investing and premium features through Robinhood Gold. Designed with modern investors in mind, Robinhood continues to evolve alongside a new generation of market participants.

Valued at a market capitalization of around $91 billion, Robinhood’s stock has been on an absolute tear in 2025, even after facing setbacks such as missing out on a spot in the prestigious S&P 500 Index ($SPX) last month. So far this year, HOOD stock is up a stunning 183%, leaving the S&P 500's 7% year-to-date (YTD) return in the dust.

Zooming out, the longer-term gains are even more eye-popping. Over the past year, the stock has had a monster rally of 336%, while the broader market has inched up just 13%. Despite a few bumps along the way, HOOD has clearly struck a powerful chord with investors.

Robinhood’s red-hot rally in 2025 has certainly caught Wall Street’s attention, but such explosive gains don’t come cheap. The stock is currently trading at a sky-high 77 times forward earnings, a sharp contrast to the sector median.

Robinhood dropped its fiscal 2025 first-quarter earnings report on April 30, which blew past Wall Street’s top- and bottom-line expectations. Revenue for the quarter soared an impressive 50% year-over-year (YOY) to $927 million, ahead of the Street’s forecast figure of $915.7 million. A key driver of this surge was transaction-based revenue, which soared 77% YOY to $583 million, primarily driven by strong revenue growth across cryptocurrencies, options and equities.

Digging further, cryptocurrency revenue led the pack, skyrocketing 100% YOY to $252 million as digital asset interest reignited. Options weren’t far behind, generating $240 million in revenue, up 56% annually. Meanwhile, equities brought in $56 million in revenue, marking a solid 44% increase. These strong numbers underscore Robinhood’s momentum as users remained active across multiple asset classes.

Robinhood also saw impressive gains in other areas. Other revenues climbed 54% to $54 million, driven by a sharp rise in Robinhood Gold subscriptions. Robinhood Gold is gaining serious traction, with subscriptions soaring a stunning 90% YOY to 3.2 million. The momentum carried through to the bottom line, too. EPS jumped a remarkable 106% to $0.37, crushing expectations by a strong 19.4% margin.

The company also made a bold move to reward shareholders, increasing its existing share repurchase program from $1 billion to $1.5 billion. The expanded buyback signals management’s strong confidence in the company’s financial health and long-term growth potential. As Robinhood prepares to unveil its second-quarter results after the market closes on July 30, analysts are eyeing another strong showing, forecasting a 48% surge in profit YOY to $0.31 per share.

Over the long haul, analysts expect Robinhood’s earnings growth story to stay firmly intact. Projections call for profits to rise nearly 20% annually to $1.31 per share in fiscal 2025, followed by an even stronger 28% jump to $1.68 per share in fiscal 2026.

Overall, Wall Street is showing steady confidence in Robinhood, with HOOD stock holding a consensus rating of “Moderate Buy” as analysts stay optimistic about its future potential. Of the 21 analysts covering HOOD, 12 recommend a “Strong Buy” rating, two give a “Moderate Buy,” six suggest a “Hold,” and only one analyst advocates for a “Strong Sell” rating. The stock is already trading at a premium to its average price target of $89.89. However, the Street-high target of $125 suggests that Robinhood stock can still rally as much as 19% from here.

Robinhood’s standout year in 2025 and its climb to new highs show just how quickly the trading platform is evolving and finding new ways to grow. With strong earnings, expanding product offerings, and a bigger focus on rewarding shareholders, the platform continues to build momentum. That said, its performance is still closely tied to crypto trends and broader market momentum, which means some ups and downs are to be expected. For long-term investors, though, Robinhood remains an exciting story — one that’s still unfolding with plenty of potential ahead.

On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com