- Morgan Stanley says Robinhood will take market share from its rivals.
- The investment bank said the fintech’s share price could more than double.
- The predictions come amid a massive crypto market pullback.
Morgan Stanley expects Robinhood’s shares to almost double in value as the fintech leverages the current crypto chaos to take market shares from rivals.
That’s according to the investment bank’s latest note to investors, in which it argues that while the trading platform’s stock price dropped almost 30% over the past week, it is “well positioned” to benefit from its standing in the market.
“We see recent events as an opportunity for HOOD to capture crypto market share from competitors given its established brand and regulatory compliance that could instil greater investor confidence as investors are increasingly focused on the safety and security of crypto,” Morgan Stanley analysts Michael J. Cyprys, Annalei E Davis, and Barron Thomas wrote.
Robinhood’s crypto capabilities alongside its innovative flair, and ability to resonate with 150 million customers, predominantly from millennials, will see its share price surge from $49.90 to $90 by this time next year, Morgan Stanley wrote. The analysts’ bull case was that the price will hit $120.
Morgan Stanley’s new estimates come as crypto has been rocked by a crash that has shaved almost 10%, or roughly $300 billion, of its total market value this week.
Donald Trump’s threat to introduce new tariffs, the $1.5 billion Bybit hack, and a smattering of scandals have all been identified as potential triggers for the fall.
Crypto business
Crypto stakeholders have cautioned that there may be more pain in the short-term, but seem convinced that the bull run is not over.
But even if it is, Morgan Stanley said it didn’t expect the pullback to be as bad as prior ones thanks to a more crypto-friendly administration, and that Robinhood will come out better than many of its rivals.
Crypto has played a key role in Robinhood’s offerings since 2018. “We can be a major player,” Johann Kerbrat, the trading app’s crypto boss, told DL News in January.
Robinhood’s crypto services contributed to a 58% jump in Robinhood’s net total revenue of $2.9 billion in 2024. Crypto also helped the brokerage record net income of $1.4 billion.
Robinhood’s market share of crypto stood at 0.75% in Jan 2025, less than half its prior peak of 1.8% in Aug 2021, according to Morgan Stanley.
The trading app is not just squaring up to industry native firms like Coinbase, but is also competing against fintechs like neobank Revolut, trading app eToro, and payments giant PayPal.
Andrew Flanagan is a Markets Correspondent for DL News. Have a tip? Reach out to aflanagan@dlnews.com.
