Robinhood stock surges after SEC removes limit on day trading activity

Robinhood (HOOD) banal jumped 5% successful aboriginal trading connected Wednesday, extending gains from the anterior league aft the SEC announced the removal of agelong lasting time trading bounds for tiny investors.

The Securities and Exchange Commission (SEC) approved removing a $25,000 minimum plus equilibrium request for time traders. Instead, the caller model allows investors of each relationship sizes to commercialized much freely, arsenic agelong arsenic they person capable wealth to screen the hazard of each trade.

“This is unequivocally bullish for Robinhood, successful my view,” said Sean Farrell, caput of integer assets astatine Fundstrat connected Tuesday night.

Farrell noted Robinhood volition payment from the regularisation change, fixed that the mean relationship equilibrium for its users is overmuch smaller than that of accepted brokerage firms.

The analysts besides noted Robinhood could beryllium a banal investors look to leap into if the caller surge successful crypto begins to fade.

“Perhaps Robinhood is 1 that volition connection some, I don't privation to accidental harmless haven, but thing that whitethorn beryllium a spot immunized from crypto-specific risks present successful the adjacent term,” said Farrell.

On Tuesday Bernstein analysts reaffirmed their Outperform standing connected Robinhood, with a $130 terms people fixed crypto’s resilience successful caller weeks, and maturation successful prediction markets.

Revenue from idiosyncratic bets connected lawsuit outcomes is expected to turn 286% year-over-year successful 2026, accounting for astir 10% of full gross and 17% of transaction-based revenue.

“We expect 2026 to beryllium catalyst-rich for prediction marketplace volumes arsenic U.S hosts the Football satellite cupful successful the summertime and governmental enactment heats up successful H2 connected U.S mid word elections,” wrote expert Gautam Chhugani and his team.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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