Robinhood Eyes $140 Target as Prediction Markets Surge

* Piper Sandler upgrades Robinhood stock target to $140, citing growth potential. * Prediction markets and new ventures expected to generate $200 million, fueling optimism. On September 23, 2025, Investing.com reported that Piper Sandler raised Robinhood’s price target to $140 from $120. The firm cited $200 million in potential revenue from prediction markets and new diversification efforts. Following this upgrade, Robinhood Markets Inc.’s stock valuation increased notably, a move that reflects strong optimism about the company's expansion into new markets and its efforts to diversify its business. Piper Sandler’s optimism centers on Robinhood’s partnership with Kalshi, a prediction market platform specializing in event contracts. Through this collaboration, Robinhood offers contracts on events such as NFL and NCAA games, which have attracted unprecedented user engagement. The firm forecasts this segment will generate $200 million in annual revenue, and Robinhood and Kalshi have agreed to a 50-50 revenue-sharing arrangement. However, potential regulatory hurdles in states with restrictions on sports betting raise concerns about the scalability of this revenue stream. In addition to prediction markets, Robinhood has diversified its services by launching Robinhood Ventures Fund I. This product opens investment opportunities in private startups to retail investors, a market previously limited to institutional participants. This move aligns with Robinhood’s mission to democratize finance. However, the fund filings caution retail investors about the speculative nature of these investments, citing risks such as illiquidity and heightened volatility. By becoming a fund manager, the company signals a strategic shift from its traditional role as a trading intermediary. These developments come as Robinhood continues to rebuild its reputation after facing significant backlash for imposing trading restrictions during the 2021 meme stock event. Over the past year, the company’s stock price has jumped 448%. Robinhood shares last closed at $124.89, giving the company a market capitalization near $111 billion. Meanwhile, the regulatory landscape appears to be improving for companies like Robinhood. For instance, the U.S. Securities and Exchange Commission (SEC) relaxed certain rules for closed-end funds that invest in private equity. This change could create favorable conditions for Robinhood's Ventures Fund. According to MarketWatch on September 23, Robinhood’s stock (HOOD) was trading at $124.89 as of 12:00 UTC, with its 24-hour trading volume increasing by 3.1%.