Robinhood shares jump after analyst target hikes despite layoffs

Robinhood shares climbed more than 12% Wednesday after Deutsche Bank and Argus Research raised price targets and kept Buy ratings, following the company’s announcement of a workforce reduction affecting about 290 full-time roles and some open positions. Robinhood wrote in a statement that the actions were taken from a position of business strength and noted June month-to-date average daily trading volumes reached record levels across equities, options and prediction markets.

Deutsche Bank raised its price target to $105 from $103, citing strong business momentum and elevated trading activity. Argus Research increased its target to $110 from $90 and projected the company will remain in a high-growth phase as it adds brokerage customers and expands its product lineup.

Robinhood expects roughly $20 million in restructuring charges tied to severance and employee benefits, plus about $8 million in share-based compensation expenses in the second quarter. Analysts described the workforce reduction as an efficiency effort intended to remove layers of management, speed decision-making and accelerate product development.

Firms pointed to sustained retail engagement as a reason for the analyst updates. Deutsche Bank highlighted record average daily volumes across multiple trading categories as evidence of continued retail participation. Argus noted the company’s expansion into retirement accounts, subscription services and prediction markets as ways to broaden revenue sources and keep customers active.

The layoffs follow a pattern of cost and efficiency adjustments across the technology sector this year, while hiring plans in some tech areas remain active. Data from Challenger, Gray & Christmas showed employers announced more than 11,000 planned technology hires in May.

Robinhood has continued rolling out products beyond commission-free stock trading, and the company flagged higher activity in its prediction markets as part of recent trading gains. The stock moved higher on the analyst actions and the company’s report of record trading volumes.