MS · News · 20260901N

Robinhood Product Expansion

MORGAN STANLEY · 2026-09-01 · Importance 26 · Surprise 24

Morgan Stanley upgraded Robinhood Markets to Overweight, citing expanded offerings across 13 business lines, including retirement, banking and credit cards, to improve customer economics. Robinhood’s platform serves approximately 28 million customers, creating opportunities to increase assets, activity and monetization per user. Prediction markets generated $156 million of second-quarter 2026 revenue from fewer than 2 million users, exceeding Robinhood’s crypto and equity trading revenue, according to Morgan Stanley analyst Michael Cyprys.

Key facts

• Morgan Stanley analyst Michael Cyprys projected 23% annual revenue growth for Robinhood, reaching $8 billion by 2028. source
• Morgan Stanley's upgrade of Robinhood followed strong Q2 2026 financial results that saw Robinhood's total net revenues surge 32% year-over-year. source
• Morgan Stanley increased its earnings-per-share forecasts for Robinhood for the next three years. source
• Morgan Stanley upgraded Robinhood Markets' stock rating from equal-weight to overweight and raised its price target to $150, a 43% increase. source
• Morgan Stanley cited that Robinhood's prediction markets generated $156 million in Q2 revenue from fewer than 2 million users. source
• Morgan Stanley cited that Robinhood has 13 business lines now generating significant annualized revenue, including retirement, banking, and credit cards. source
• Morgan Stanley noted Robinhood has 28 million customers/users as a significant audience for new offerings. source
• Morgan Stanley upgraded Robinhood Markets (NASDAQ:HOOD) to Overweight from Equalweight and increased its price target to $150.00. source