- Barclays lowered Robinhood‘s price target to $89 and downgraded Coinbase to ‘Underweight’ on lower trading volumes.
- Cathie Wood‘s Ark Invest purchased $13 million in Robinhood shares following its selection to support Trump Accounts.
- Despite the downgrade, HOOD stock rallied 6% amid a broader market surge driven by geopolitical developments.
- Barclays anticipates Coinbase‘s Q1 EBITDA will fall roughly 24% below Street expectations.
Robinhood Markets Inc. experienced a volatile week after receiving a significant policy nod while facing analyst scrutiny on its financial outlook. The trading platform was selected on Monday to help develop infrastructure for Trump Accounts alongside The Bank of New York Mellon.
Consequently, ARK Invest disclosed purchases of Robinhood shares worth $13 million across several of its funds on Tuesday. The investment firm bought shares for its ARK Innovation, Next Generation Internet, and Fintech Innovation ETFs.
However, Barclays cut Robinhood‘s price target to $89 from $124 on Wednesday, according to TheFly. The firm maintained an ‘Overweight’ rating but cited weaker revenue realizations.
Meanwhile, Barclays downgraded Coinbase Global Inc. to ‘Underweight’ with a $140 target. Analysts flagged declining trading volumes and warned the weakness could persist.
They estimated Coinbase‘s earnings before interest, taxes, depreciation, and amortization would be about 24% below Wall Street expectations. This reflects notably weaker retail trading activity in the sector.
Despite the bearish analysis, HOOD stock soared 6% in morning trade amid a broader market rally. Retail sentiment on Stocktwits moved to ‘bullish’ from ‘neutral’ territory around the stock.
Separately, Keefe Bruyette reinstated coverage of Robinhood with a ‘Market Perform’ rating. The firm set a price target of $75 for the brokerage’s shares.
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