Robinhood shares up 220% this year, outperforming S&P amid strong product momentum

Source: CryptoNewsNet Original Title: Robinhood shares are up 220% this year, beating the S&P Original Link: Robinhood and Coinbase continue to outperform the S&P this year, with both stocks showing strong momentum. This rally has become one of the most notable stories in the market.

Traders are closely watching these two companies as they demonstrate consistent growth. The gains are backed by solid fundamentals, steady product launches, and analyst support from major banks who believe both companies have significant room for growth.

Truist sees Robinhood gaining more momentum

Truist assigned a buy rating to Robinhood with a $155 price target, implying approximately 30% potential upside. Analyst David Smith noted that the “current optically lofty valuation” is justified by the company’s strong growth trajectory and profitability.

Smith expects Robinhood to deliver a second consecutive year of revenue growth exceeding 50%, with expectations for around 20% yearly expansion in subsequent years.

The growth stems from a more diversified revenue mix. Robinhood continues rolling out new tools while enhancing existing products, attracting more users with larger account sizes. Prediction markets have emerged as one of the company’s fastest-growing products.

Smith wrote: “HOOD’s leading product velocity has driven sizable growth in key metrics & share gains as the company expands its addressable customer universe, allowing it to keep moving upmarket towards larger wallets.” He added that this momentum, combined with solid unit economics, supports further margin expansion.

The analyst highlighted that Robinhood’s margins have improved significantly since achieving profitability in 2022. Both margin expansion and robust growth provide a strong case for continued stock appreciation. He noted: “The company is one of the top performers in the S&P in terms of both growth and margins.”

Smith also emphasized that banking and advisory services remain in early stages, with international and institutional customer segments barely tapped, leaving substantial room for “outsize growth.”

Deutsche Bank backs Coinbase as it expands products

Deutsche Bank assigned Coinbase a buy rating with a $340 price target, implying roughly 35% upside.

Analyst Brian Bedell believes the exchange’s diversification into additional products strengthens its growth narrative. These new offerings can expand its addressable market, broaden service diversity, and mitigate future pressure from retail crypto-trading fees.

Bedell sees Coinbase benefiting from the next phase of evolution by leveraging its crypto market position to build a comprehensive on-chain platform through its “everything exchange” strategy. The convergence of traditional finance and DeFi, combined with growing on-chain adoption, positions the company well for long-term growth.

Bedell views 2025 as a significant investment year, though he believes the company is well-positioned to scale these investments into 2026 and beyond. In a favorable crypto market, revenue growth could outpace expense growth, driving higher earnings while reducing the extreme revenue volatility historically experienced.

Bedell stated: “While crypto prices, trading volume & sentiment will remain key contributors to the company’s financial results, we see its diversification efforts and organic growth potential as helping to reduce the historical extreme swings in revenue & adjusted EBITDA.”

Coinbase shares have gained 2% this year.