Robinhood stock price rose in the premarket session on Monday, signalling potential resgistratiin of the first successive three-day gains since mid-November. The stock was up by 2.7% as of press time, going for $41.29.
Investors are upbeat on Robinhood (NASDAQ: HOOD) after Goldman Sachs and Bank of America analysts upped their price targets on Friday. BofA raised its priced target for HOOD from $31 to $53, while Goldman Sachs retained its price target of $40 while raising the rating from “neutral” to “buy”.
Robinhood’s diversification and expansion strategy pay off
The uptick in Robinhood stock price outlook is cemented by the positive reception of its diversification strategy. The company initially started off by targeting the millenials and Gen z age cohorts, with its intuitive and innovative approach to stock investment making it an attractive option. However, it has since opened up its product offerings, including expansion of its cryptocurrency portfolio, AI and Registered Investment Advisor (RIA).
At its current price, Robinhood stock price is about 7% above its IPO price. That doesn’t seem much for a company that has been trading publicly since mid-2021. However, the correct contextual assessment would require mentioning that it has gained 215% year-to-date and 19% in the last month.
Furthermore, its presentation on the inaugural Investor Day event on December 4 signals a company with solid fundamentals and a long growth runway. The company outlined plans to expand in the EU, Asia and the UK starting next year, which could spur revenue growth and propell HOOD price higher.
Robinhood stock price prediction
Robinhood stock price pivots at $41.00 and the Relative Strength Index (RSI) reading is ar 73 on the hourly chart, signifying a strong bullish control. The upside will prevail if the price action stays above the pivot mark. On the other hand, moving below that level will shift the momentum to the downside.
With the buyers in control, HOOD will likely move higher and encounter initial resistance at $41.55. Gains above that level could potentially take the price higher to test $42.00.
On the downside, the primary support is likely to be at $40.50. A break below that level will invalidate the upside narrative. Meanwhile, the resulting momentum could extend the decline to test the next support at $39.80.
