Top 4 Reasons Why Robinhood Stock May Rebound Back to $100

Key Insights

• Robinhood stock has dropped by double digits from its highest point this year.
• The company was selected to operate Trump accounts for kids.
• Robinhood’s growth is continuing, while the valuation metrics have plummeted.

Robinhood stock price has not found bids recently, with all attempts to rebound finding substantial resistance. It has slumped from a record high of $153 in October to $67 today. Still, some notable catalysts may help drive the HOOD stock price much higher in the near term.

Robinhood Stock to Benefit From the Growing Diversification

Robinhood was started to offer an application for Americans to buy and trade stocks without paying commissions. Its business model helped to disrupt the brokerage industry, with companies like TD Ameritrade and Schwab slashing their commissions.

Today, Robinhood is a much bigger and more different company than it started as. For example, it now generates most of its revenue from the booming options market.

It has also become a large company in the crypto industry, where it is processing transactions worth billions of dollars each month.

Most recently, the company entered the wealth management industry by launching a private bank in partnership with Coastal Community Bank. That business attracted over $1 billion in assets within the first few months.

The company has also aimed at American Express by launching its own card that costs about $650 a year. It has also become a giant company in the real-world asset (RWA) tokenization industry.

All these efforts will make Robinhood a more resilient company in the future. It also has more room to grow, especially by international expansion.

Robinhood Selected to Operate Trump Accounts

Meanwhile, the company, together with BNY Mellon, has become large beneficiary of Donald Trump’s Big Beautiful Bill, which passed last year.

In a statement on Monday, the US Treasury said that the two companies will be tasked with building the apps for Trump Accounts, which are designed to allow parents to invest for their children.

The government will deposit $1,000 in accounts of kids born on January 1 last year, and companies can opt to contribute.

Therefore, the company will likely generate millions of dollars a year from this new business line in the foreseeable future.

Analysts Expect Robinhood’s Business to Keep Growing

Meanwhile, Wall Street analysts are optimistic that Robinhood has more room to grow in the coming years.

For example, data compiled by Yahoo Finance shows that most analysts expect that its revenue and profitability growth will accelerate despite the ongoing weakness in the crypto industry.

The average estimate among analysts is that Robinhood’s first-quarter revenue will come in at $1.2 billion, up by 29% YoY. This will be an encouraging figure considering that Bitcoin and most altcoins dropped sharply in the first quarter. Most crypto exchanges also experienced weak transaction metrics as investors moved to Hyperliquid.

Robinhood’s annual revenue is expected to jump by 20% this year to over $5.37 billion, followed by $6.27 billion next year. Its profitability will likely continue improving in the near term.

All these numbers are happening as its valuation becomes more affordable than it was last year. The forward price-to-earnings ratio has dropped to 27, well below the historical average of nearly 40.

HOOD Stock Price Forecast

The three-day chart shows that HOOD stock has been forming a slowly developing falling wedge pattern, which may lead to a strong rebound in the near term. This pattern is observed by drawing two descending and converging trendlines. A rebound usually happens when the two lines are about to converge.

The Average True Range has continued falling and it is now at its lowest level since September last year. A falling ATR indicator signals that the downtrend is losing momentum.

Therefore, there is a possibility that the stock will rebound sharply in the coming days or weeks. If this happens, it will rebound to the important psychological level at $100. A surge above that price will point to more upside, potentially to the all-time high of $153.

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