Robinhood Markets (NASDAQ:HOOD) could draw more active traders with new product launches, an analyst says, highlighting two key tools for investors.
The Analyst: Piper Sandler’s Patrick Moley maintained an Overweight rating on Robinhood with a $120 price target.
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The Analyst Takeaways: The stock price is already flying higher thanks to its inclusion in the S&P 500 Index. New product launches could also attract new customers and boost share prices even further.
The company's upcoming product launches include:
- Short selling in the coming months.
- Futures trading on the Robinhood Legend active trader platform.
- Overnight index option trading.
- New AI capabilities in the app.
- The Robinhood Social trading platform in early 2026.
The move underscores CEO Vlad Tenev‘s ambition to make Robinhood a "financial superapp." Tenev unveiled the updates at the F1 Grand Prix Plaza in Las Vegas.
The introduction of short selling and Robinhood Social are the “most important” announcements, according to Moley.
"Short selling has been a glaring product gap for HOOD and has kept more sophisticated active traders away from HOOD's offering up to this point,” he says.
Robinhood Social will allow users to see the performance of other traders, discuss strategies, and see trades from others live. Moley calls it an "interesting concept" that could help with customer acquisition.
However, the analyst said the announcements may not bring short-term upside to the financials.
"We applaud the continued product innovation and focus on active traders," Moley added.
Price Action: HOOD stock is up 3.3% to $122.38 on Wednesday. It has a 52-week trading range of $19.54 to $123.00. The new 52-week high was hit earlier during Wednesday's trading session. Shares are up 210% year-to-date in 2025.
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