Robinhood Markets extend losses after Needham cuts PT

Robinhood Markets' HOOD.O stock is down 6.6% at $41.11 on Fri after Needham analysts cut their price target citing downward revision in crypto trading volumes from retail customers partly offset by an increase in revenue from its prediction markets offering

HOOD is on track for the fourth straight session of losses and on track for the consecutive month of loses in March. It is up ~11% YTD with today's move

The rollout of HOOD's prediction markets offering since Oct. 2024 will likely add about $100 mln in revenue in 2025 but that is offset by estimated lower crypto trading, said Needham analysts led by John Todaro

"As the crypto market has cooled, retail customers experience a "flushing out" effect. We see macro headwinds in 1H'25 (i.e. tariffs, US fiscal austerity) impacting HOOD's crypto volumes more than equities/options, which we brought modestly lower," Todaro says

Needham cuts PT to $62 from $70 but retained its "buy" rating

Among 21 analysts that cover HOOD, avg rating is "BUY" and median PT is $63.50

Earlier this week, HOOD announced it will roll out wealth management and private banking services on its platform