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Robinhood Markets (HOOD) shares closed higher on June 10 after CEO Vlad Tenev said the company has received regulatory approval to operate as an IPO underwriter.
Underwriters sit at the center of the IPO process; they advise companies on deal pricing, build the order book, coordinate institutional demand, and critically, collect a slice of the total deal proceeds as fees.
Tenev’s announcement brings much-needed reprieve to the underperforming Robinhood stock, currently down more than 20% versus the start of this year.
Why That Matters for Robinhood Stock
The regulatory approval puts HOOD in direct competition with Wall Street giants, especially Goldman Sachs, Morgan Stanley, and Bank of America, who have long dominated the IPO market.
On X, Tenev framed the announcement as an organic evolution, adding “the question changed from why allocate to retail at all to how big can the allocation be.”
Note that demand for pre-IPO retail access is accelerating in 2026 — with SpaceX alone willing to commit about 30% of its shares to retail investors, which would amount to a rather incredible $22.5 billion.
Robinhood is already named as one of the select retail brokers distributing SPCX shares to clients.
All in all, HOOD shares extended gains on Wednesday as investors figured the fintech company is positioning itself to capture a meaningful share of that deal flow and the fees that come with it.
Fundamentals Warrant Buying HOOD Shares
Underlying fundamentals provide further ammunition to bulls. May 2026 data shows HOOD has $377 billion in platform assets, up a remarkable 48% on a year-over-year basis.
Crucially, the company is capturing stickier, long-term capital. Its premium Gold subscription base climbed 36% in fiscal Q1 to 4.3 million users, providing a predictable, high-margin revenue buffer against trading volatility.
Moreover, Robinhood’s retirement assets scaled rapidly to $27.4 billion — positioning it as a key beneficiary of the multi-trillion-dollar intergenerational wealth transfer as its young customer base (median age 35) matures.
Aggressive international expansion in Europe, Singapore, and Canada, and new offerings, including agentic AI trading, provide additional reasons to own Robinhood shares in 2026.
Robinhood Remains Buy-Rated Among Wall Street Firms
Investors can also take heart in the fact that Wall Street remains positive on Robinhood Markets as it evolves from a cyclical trading app into a comprehensive wealth management powerhouse.
The consensus rating on HOOD stock is currently “Moderate Buy," with the mean price target of about $101 indicating potential upside of roughly 18% from here.
