Morgan Stanley Sets $150 Target on Robinhood, Citing Prediction Market Boom

Morgan Stanley upgraded Robinhood (HOOD) and set a $150 price target, citing what it called a boom in prediction markets as a fresh growth avenue for the trading app. The call adds a new bullish data point to a stock that has already moved well beyond its original zero-commission trading pitch. The upgrade lands alongside a separate Seeking Alpha piece questioning how Robinhood built its current business, describing a shift from free trades to what it calls a financial empire built at a steep cost. That tension, between Wall Street's rising price targets and scrutiny of how Robinhood generates revenue, is likely to shape how investors read the stock through its next earnings report. What is unresolved is whether prediction market volume can scale into a durable revenue line or proves to be a shorter-lived trend tied to current market conditions.