Robinhood Stock Soars on Bullish Analyst Upgrades, Prediction Markets Drive Growth

Retail trading platform Robinhood Markets (NASDAQ:HOOD) saw its stock price surge by 11% to $118.88 on Thursday, following a series of bullish analyst upgrades.

Morgan Stanley upgraded Robinhood's stock to Overweight from Equal Weight and raised its price target to $150 from $124 in September, citing the company's growing collection of financial products and prediction markets as key sources of growth.

Ryan Koepke of Morgan Stanley noted that event-contract revenue reached $156 million in Q2, surpassing cryptocurrency revenue of $100 million, and that customer assets on the platform have grown to $355 billion.

The boost for Robinhood is part of a broader trend in online brokerage stocks, with Webull (NASDAQ:BULL) climbing 7% to $9.62 and Interactive Brokers (NASDAQ:IBKR) gaining 4% to $92.44.