What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) jumped 10.5% in the afternoon session after Bank of America raised its price target on the stock as the company announced a major expansion of its crypto offerings in the European Union.
BofA Global Research boosted its price target to $95 from $65, citing an improved regulatory outlook for digital assets which they believe will encourage wider investor participation in cryptocurrencies.
This bullish analyst sentiment was followed by Robinhood's announcement that it is launching US stock and ETF tokens for its European customers, effectively transforming its EU app from a crypto-only platform to an all-in-one investment tool. The company also introduced crypto perpetual futures with leverage for eligible EU clients.
These moves signal a significant step in Robinhood's strategy to expand its global footprint and integrate cryptocurrency as a core component of the financial system.
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What The Market Is Telling Us
Robinhood’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. But moves this big are rare even for Robinhood and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 5.3% after the company wasn't added to the S&P 500 Index following the quarterly rebalancing.
On Friday, June 6, 2025, markets speculated that Robinhood was a strong contender to join the Index, meeting criteria such as a market value of at least $20.5 billion and GAAP profitability over the past four quarters, as well as the most recent quarter. HOOD's omission might force investors to adjust their expectations, at least for now.
Robinhood is up 135% since the beginning of the year, and at $92.60 per share, has set a new 52-week high. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $2,660.
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