Robinhood Markets, Inc. ( HOOD ) shares are in focus ahead of fourth-quarter earnings Tuesday after the market closes.

Robinhood Markets ( HOOD ) stock is showing exceptional strength. Why is HOOD stock up today?

What To Expect From HOOD Earnings

Robinhood is expected to report earnings per share of 63 cents and revenue of $1.34 billion. The company has beaten both earnings per share and revenue estimates in each of the last four quarters. In the most recent quarter, Robinhood posted earnings per share of 61 cents, beating the consensus estimate of 53 cents, while revenue came in at $1.27 billion, above the $1.19 billion estimate.

“Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down— Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” said Vlad Tenev, chairman and CEO of Robinhood.

Investors should keep an eye on daily active users (DAUs), which have shown growth trends in previous quarters, as this metric directly correlates with trading volume and revenue. Additionally, watch for any shifts in average revenue per user (ARPU), as fluctuations could indicate changes in user engagement and monetization effectiveness. Lastly, monitor the impact of cryptocurrency trading on overall transaction volumes, particularly given the recent volatility in Bitcoin prices, which could drive significant trading activity.

Consensus Ratings and Analyst Changes

Multiple analysts reiterated Overweight ratings on Monday ahead of Robinhood’s earnings report:

Cantor Fitzgerald analyst Ramsey El-Assal reiterated an Overweight rating on Robinhood and maintained a $130 price target.

Keybanc analyst Alex Markgraff maintained an Overweight rating on Robinhood and lowered the price target from $160 to $130.

Robinhood has an average rating of Buy and a consensus price target of $122.81.

Robinhood Shares Rise

HOOD Price Action: At the time of writing, Robinhood shares are trading 5.87% higher at $87.68, according to data from Benzinga Pro.

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