- Robinhood introduces AI agents that can trade stocks and make credit card purchases on a user’s behalf, but within strict financial limits.
- The AI agents analyze user portfolios to suggest strategies but can only trade using funds in a separate, dedicated wallet.
- Gold cardholders can enable AI spending first, with monthly limits and optional manual approvals required for transactions.
- The news caused Robinhood (HOOD) stock to climb nearly 2%, despite the stock being down 36% year-to-date.
- Analysts remain bullish, with price targets from Bernstein and B of A Securities set at $130 and $154, respectively.
Robinhood Markets has launched a feature allowing customers to deploy AI agents for autonomous trading and spending, entering a competitive field of financial AI tools. The company announced that users can now create accounts specifically for these digital assistants, which connect to a dedicated funding wallet.
These agents can read and analyze a user’s entire portfolio to devise trading strategies and suggest new investments. However, they are strictly confined to executing orders only with the pre-loaded balance in their isolated wallet, creating a safety mechanism.
“These AI agents for consumers have started to trade in the market,” said Abhishek Fatehpuria, Robinhood’s vice president of product management. He added that customers want to give their agents the power of Robinhood but in a very safe way, according to the statement.
Consequently, the platform is joining numerous firms integrating AI into services like stock research and automated investing management. This agentic feature represents a significant step forward in automated personal finance management.
Robinhood Gold cardholders can also direct AI agents to handle purchases, but only after setting a monthly spending cap and choosing whether to require manual approvals. For example, a user could task an agent with booking a coveted restaurant reservation or buying a handbag under $2,500.
Access will debut for Robinhood Gold customers, with Platinum cardholders gaining the capability after that card’s launch later this year. Meanwhile, Robinhood (HOOD) stock climbed just shy of 2% higher on the announcement day.
Investors did not view the update as a major volatility event, despite the innovation. The stock has nonetheless slid 36% year-to-date, raising concerns about its performance in a tough market.
Most analysts maintain a positive outlook, with price targets significantly higher than the current $74.09. Bernstein and B of A Securities are particularly optimistic, setting targets at $130 and $154, respectively.
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