JPMorgan slashes Robinhood's price target ahead of Q1 earnings

JPMorgan has lowered its price target on Robinhood Markets (Nasdaq: HOOD). 

This comes just four days before it announces its earnings for the first quarter of 2026.

Robinhood, cofounded by Vlad Tenev and Baiju Bhatt in 2013, is a commission-free trading platform that allows everyday investors to buy stocks, ETFs, and options with no fees. 

Crypto became a significant part of its business early on. Robinhood Crypto lets users trade Bitcoin (BTC), Ethereum (ETH), and other digital assets directly within the app.

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Busy month for Robinhood

Despite the downgrade, Robinhood has had an eventful April. 

On Apr. 22, Robinhood Ventures Fund I announced it had closed a $75 million investment in OpenAI, the company behind ChatGPT. This was one of the fund's largest single investments to date, with the purchase of OpenAI common stock executed on April 17.

The company also scored a regulatory win in Asia-Pacific, securing in-principle approval from the Monetary Authority of Singapore on Apr. 27 for offering brokerage services in the country. 

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Analyst hints at muted Q1 results

JPMorgan analyst Ken Worthington lowered the price target for Robinhood by 18.58% from $113 to $92. However, he maintained a Neutral rating on the stock.

The revision follows conversations with Robinhood's management ahead of first quarter of 2026 results, due on Apr. 28 after market close.

The analyst cited a headline decline in first-quarter estimates driven primarily by lower net interest revenue and higher-than-expected expenses. 

JPMorgan also trimmed its target valuation multiple, pointing to softer net deposit growth and what it described as a "limited outlook on retail engagement going forward" as key reasons for the more cautious stance.

A target valuation multiple is how analysts decide what a company is worth relative to its earnings, revenue, or cash flow.

As per TipRanks, among 17 Wall Street analysts offering 12-month price targets, the average sits at $106, with a high of $135 and a low of $75.

HOOD stock was down 5.97% at press time, trading at $83.15. 

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