If you’ve been keeping an eye on the market, you’ve probably noticed Robinhood stock (HOOD) making some waves lately. As someone who loves digging into stock stories, I wanted to chat with you about how this online trading platform has been doing over the past year, what analysts are saying, and whether 2025 might be the perfect moment to jump in—or hold off. Let’s also talk about HOOD’s (Robinhood stock) recent stock price drop, why it happened, and what the future might hold for it. Grab a coffee, and let’s dive in!
Robinhood’s Stock Performance Over the Last Year
Looking back at the past 12 months, Robinhood stock has been a bit of a rollercoaster—pretty exciting if you’re into that kind of ride! According to Yahoo Finance, Robinhood stock (HOOD) started 2024 at a monthly average of $22.71 and has climbed all the way to $70.986 as of beginning of June 2025. That’s a massive jump of over 200% in just one year! The stock hit a yearly low of $13.98 back in early 2024 and soared to a high of $77.8, showing some serious volatility.
The big push came in late 2024 and early 2025, with monthly averages jumping from $37.26 in December 2024 to $51.95 in January 2025, and then steadily climbing through May to $66.15. This surge has been fueled by increased trading activity—especially in crypto and options—as well as speculation about joining the S&P 500. But early June 2025, the stock is sitting at around $70, down from a recent high, and that’s got people talking. More on that in a bit!
Analysts’ Expectations for 2025
So, what do the experts think about HOOD’s (Robinhood stock) future? Analysts are bullish with a mix of optimism and caution. Based on the latest insights, the average 12-month price target hovers around $61.95, which suggests a potential drop of about 17% from today’s price of $70.986. That’s a bit of a head-scratcher after such a strong run! Some are more bullish, with targets reaching up to $105, while others are more conservative at $32. A top five analyst from Deutsche Bank called it a “good buying opportunity,” citing strong product adoption and growth momentum—targeting a 60% upside.
The consensus leans toward a “Buy” or “Moderate Buy,” with some analysts weighing in, thanks to Robinhood’s solid Q1 2025 earnings—$927 million in revenue and $0.37 EPS, both beating expectations.
For the full year 2025, analysts are forecasting revenues around $3.62 billion and EPS of $1.28, which is a healthy growth projection. Crypto trading, especially with Bitcoin potentially hitting new highs, and options trading setting records are big drivers here. But there’s a flip side—some worry about overvaluation, with a price-to-sales ratio of 20.54 and a price-to-book ratio near its five-year high of 8.06. Plus, the Altman Z-Score of 2.33 hints at some financial stress, so it’s not all smooth sailing.
Recent Robinhood Stock Price Drop: Missing the S&P 500 Boat
Ouch! If you checked the market this morning, you might’ve noticed HOOD taking a hit. The stock dropped after failing to join the S&P 500, despite all the hype. Investors were hoping for that coveted index inclusion, which would’ve brought a flood of passive fund money and a nice price boost. Wall Street firms like Bank of America and Barclays had pegged Robinhood stock (HOOD) as a top candidate, and the stock had rallied 17% over six days leading up to the announcement. But when the S&P 500 rebalancing was revealed after Friday’s close, Robinhood stock didn’t make the cut. That disappointment led to a sell-off, with the stock slipping from its recent highs.
Why Robinhood Stock Didn’t Make It?
A few things could be at play. First, the S&P 500 has strict criteria—things like profitability, market cap, and liquidity—and while HOOD’s (Robinhood stock) market cap is a hefty $64.77 billion, its lack of consistent profitability might’ve raised red flags. Second, competition from other contenders like AppLovin or Interactive Brokers, which might have stronger financials or broader index eligibility, could’ve edged it out. Lastly, the market’s been jittery with economic uncertainty, and the S&P committee might’ve played it safe.
Is 2025 the Right Time to Invest in Robinhood Stock?
So, should you buy HOOD – Robinhood stock in 2025? Let’s weigh it out. On the plus side, Robinhood’s got a lot going for it. The company’s platform is thriving, with 25.9 million funded accounts and $221 billion in assets under custody as of April 2025—a 70% year-over-year jump. Their recent acquisition of Bitstamp for $200 million expands their crypto game, and new products like futures trading are drawing in users. Plus, with interest rates expected to drop further in 2025, trading activity could stay hot, boosting transaction revenue.
But there are risks. The most recent drop shows how sensitive Robinhood stock HOOD is to market sentiment and big events like S&P inclusion. The crypto segment, which brought in $252 million in Q1 2025, could stumble if Bitcoin corrects again—history shows it’s happened before. The high valuation and potential for a 38% pullback to align with its long-term price-to-sales average are also worth a second thought. And let’s not forget the S&P 500 miss might dampen momentum for a while.
Is It Now Time to Invest $1,000 in Robinhood Stock?
If you’re wondering whether it’s worth investing $1,000 in Robinhood stock (HOOD) right now, you’re not alone. Let’s break down what’s driving the stock, risks involved, and how it could fit into your portfolio.
What’s Fueling Robinhood’s Rally?
- Surge in trading activity: Robinhood stock saw a record-high increase in trades during market volatility earlier this year, with crypto acquisitions further boosting its growth trajectory.
- Strategic expansion: The acquisition of Bitstamp is expanding Robinhood’s crypto services internationally, while 24/7 trading and wealth management initiatives are adding new revenue streams.
- Pumping retail investors: Robinhood’s chief brokerage officer claims their user base is stabilizing the market through around-the-clock trading—a trend expected to continue.
Why It Might Be Worth a $1,000 Bet?
- Retail dominance continues: Robinhood is becoming the go-to platform for non-institutional investors, growing its footprint in trading, crypto, and wealth management.
- Expanding crypto presence: The $200 million Bitstamp deal and growing crypto offerings could tap into a booming digital assets market and turbocharge Robinhood stock growth.
- First-profit milestone: Robinhood recently posted its first full-year profit—proof that its business model can work steadily without relying solely on trading volatility.
What Could Go Wrong?
- Pullback risk: With some analysts projecting a significant drop to align with targets near $62, Robinhood stock (HOOD) may be overbought short-term.
- Monetization challenges: Growth from user activity and crypto must be balanced against sustainable revenue and profits.
- Regulatory scrutiny: As the platform grows, changes in crypto and trading regulations could introduce new challenges.
Final Take: Should You Invest $1,000?
If you believe in Robinhood’s strategy to democratize trading and expand into crypto and wealth management, and you’re comfortable with volatility, a $1,000 investment could offer significant upside. Just be sure to manage your exposure—consider splitting your allocation (e.g., $600 now and $400 later).
While the stock shows growth promise, its elevated valuation and short-term risks mean it’s not right for every investor. Treat it as part of a diversified portfolio, not a home run swing.
What Are Future Expectations for Robinhood Stock?
Looking ahead, I’m cautiously optimistic about Robinhood. The company’s focus on international expansion, institutional services, and new markets could diversify its revenue streams. If the SAFER Banking Act or Schedule III reclassification for cannabis (which could indirectly boost trading) passes, it might ease some regulatory pressures and attract more users. Analysts see revenue growing 10.5% annually, and while earnings might dip slightly, a 12.1% return on equity in three years isn’t bad.
That said, the stock’s volatility—13% weekly swings—and reliance on crypto and interest rates keep it risky. If Robinhood stock HOOD can prove consistent profitability and maybe snag that S&P spot in a future rebalance, it could be a winner. For now, it feels like a hold or a small position play unless you’re comfy with the ups and downs.
The Bottom Line
Robinhood stock (HOOD) has had an impressive year, jumping from $22 to over $70, but the most recent drop after missing the S&P 500 is a reality check. Analysts see a $61.95 target, with growth potential tempered by valuation concerns. For 2025, it could be a good time to invest if you believe in its long-term vision and can handle the volatility—especially with this dip offering a possible entry point. But if you’re risk-averse, maybe wait for more stability or a clearer S&P path. Keep an eye on Robinhood Markets Inc. earnings (next big one’s early August), crypto trends, and any policy wins. What do you think—ready to ride this wave or sitting this one out?
