Robinhood (HOOD) stock surged 5% as Compass Point raised its price target to $161, citing revenue growth from equity transactions, prediction markets, and crypto fees. Analysts anticipate October trends exceeding 4Q expectations, with HOOD generating over $20m from prediction markets in 3Q, up 100% QoQ.

CEO Vlad Tenev revealed that event contracts for predictions surpassed 4 billion, with $0.01 earnings per contract, implying $40 million revenue. Analysts project this figure to increase during the NFL season. Crypto revenue is expected to rise driven by higher fees and “staking” services, with potential growth in 2H25 and 2026.

Robinhood will unveil earnings next Wednesday and currently has 20 Buy ratings, 8 Hold, and 1 Sell. The stock leaped over 250% YTD and recently joined the S&P 500 index. Analyst Ed Engel expects HOOD’s 4Q prediction to reach $50m with the NFL season underway. Follow Ines Ferre on Twitter @ines_ferre for more insights.

Read more at Yahoo Finance: Robinhood stock pops 5% as analyst raises price target, citing explosive growth in prediction markets