Robinhood Markets HOOD shares moved higher on Wednesday after multiple Wall Street firms reaffirmed their bullish outlook on the online brokerage, arguing that the company’s growth prospects remain strong.
The bullish view came despite a planned workforce reduction affecting roughly 10% of employees.
The stock gained more than 12% in mid day trading after both Deutsche Bank and Argus Research raised their price targets on the company.
The analyst upgrades came shortly after Robinhood announced a restructuring effort that will eliminate approximately 290 full-time positions and a small number of open roles.
The company emphasized that the move was not driven by weakening business conditions.
“The company is taking this action from a position of business strength, including June month-to-date average daily trading volumes at record levels across equities, options, and prediction markets,” Robinhood said.
Analysts raise targets on strong business momentum
Deutsche Bank raised its price target on Robinhood to $105 from $103 while maintaining a Buy rating on the shares.
The bank cited strong underlying business momentum and noted that June average daily trading volumes have reached record levels across multiple trading categories.
According to Deutsche Bank, management indicated that the operational changes were made from a position of strength rather than in response to slowing growth.
Analysts said the elevated trading activity reflects continued engagement among retail investors and supports the company’s long-term growth outlook.
Argus Research also raised its price target, increasing its forecast to $110 from $90 while maintaining a Buy rating.
The firm expects Robinhood to remain in a high-growth phase for several years as it continues adding brokerage customers and expanding its product lineup.
Analysts believe the company’s growing range of investment and financial services products will help sustain customer engagement and drive future revenue growth.
Robinhood has steadily expanded beyond commission-free stock trading into retirement accounts, subscription products, prediction markets, and other retail-focused financial services.
Workforce reduction seen as efficiency move
Robinhood expects to record approximately $20 million in restructuring charges related to severance and employee benefits, along with about $8 million in share-based compensation expenses during the second quarter.
Rather than viewing the layoffs negatively, analysts largely framed the move as an effort to improve efficiency.
Argus said the workforce reduction could help remove organizational layers, speed up decision-making, and improve product development.
The restructuring reflects a broader trend across the technology sector, where companies continue balancing cost controls with investment in future growth opportunities.
While firms such as Snap, Block, Atlassian, and Pinterest have also announced workforce reductions this year, technology remains a leading source of hiring plans.
According to Challenger, Gray & Christmas, employers announced more than 11,000 planned technology hires in May even as companies continued reshaping their organizations.
For investors, the combination of record trading activity, expanding product offerings, and growing prediction market revenue continues to support optimism about Robinhood’s long-term growth trajectory.
