Can HOOD Stock Hit $130 as Robinhood Plans to Raise $2 Bln?

Key Insights:

• HOOD stock gains fresh attention as Robinhood targets $2 billion through notes sale.
• Cantor Fitzgerald lifts HOOD target to $130 as trading activity reaches records.
• Robinhood cuts workforce by 10% while expanding products and raising capital.

HOOD stock moved into focus after Cantor Fitzgerald increased its price target on Robinhood Markets to $130 from $110 while maintaining an Overweight rating.

The revised target arrived as Robinhood announced plans to raise $2 billion through a private offering of convertible senior notes due 2029.

The company also disclosed workforce reductions and highlighted strong trading activity across several product categories. Together, these developments have renewed attention on whether HOOD stock can reach the newly target.

The Robinhood stock recently traded at $106.75, giving the company a market capitalization of $95.91 billion. The stock gained 10% during the past week and advanced 38% over the last year.

Despite that performance, shares closed June 22 at $105.71, down 2.26% for the session after reversing from intraday highs near $112.

HOOD Stock Gets Support From New Growth Drivers

Cantor Fitzgerald pointed to several factors behind its higher target for HOOD stock. Among them was the launch of Rothera, which the firm believes could improve monetization of prediction market activity.

The World Cup also emerged as a key factor. According to the firm, the tournament has driven increased participation in prediction markets. Robinhood reported record average daily trading volumes during June across equities, options, and prediction markets.

The firm also cited the rollout of Trump Accounts and the removal of Pattern Day Trader restrictions. In addition, a stronger initial public offering environment could increase retail participation and trading activity.

Cantor Fitzgerald said a safer issuance market may support customer acquisition and engagement, which in turn could boost the HOOD stock.

Robinhood also provided updated expense guidance. The company expects adjusted operating expenses and stock-based compensation to range between $2.7 billion and $2.825 billion. That represents approximately 22% year-over-year growth at the midpoint.

According to the firm’s estimates, about 14% of that growth relates to recently launched products. TradePMR and Bitstamp acquisition costs account for roughly 3%, while core expense growth contributes about 5%.

Robinhood Stock Plans $2 Billion Capital Raise

Robinhood announced plans to offer $2 billion of convertible senior notes due 2029 through a private placement to qualified institutional buyers. The company also granted initial purchasers an option to acquire an additional $200 million in notes.

At the same time, Robinhood (HOOD) revealed plans to reduce its workforce by 10%. The company said the move aims to simplify operations and improve product development efforts.

Robinhood expects approximately $28 million in restructuring costs. Those costs include about $20 million for severance and employee benefits. Another $8 million relates to share-based compensation. The company plans to record the charges during the second quarter of 2026.

HOOD Stock Faces Selling Pressure Despite Strong Activity

While analysts raised targets, Robinhood (HOOD) stock experienced a pullback during the latest trading session. Shares traded above the previous close early in the day but lost momentum as selling pressure increased.

HOOD Stock Price Movement | Source: Google Finance

The HOOD stock fell below the last closing level of $108.15 and remained under that mark for most of the afternoon. Trading volumes were strongest during the opening hours before activity moderated later in the session.

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