For the month ending June 26, shares of Robinhood Markets (HOOD) jumped 29.46% and some analysts think there’s more upside in store for the financial services stock.
If that assessment is accurate, the Direxion Daily HOOD Bull 2X ETF (HODU) is an ETF that active short-term traders should monitor. HODU packs a punch as it’s designed to deliver 200% of the daily performance of this famous fintech stock. HODU’s status as a leveraged ETF confirms that it should not be held for extended periods of time. However, given the popularity of Robinhood stock among both professional and retail traders and the company’s enviable positioning in some high-growth segments, there are likely to be plenty of appropriate occasions in which to make use of the Direxion ETF.
Indeed, Wall Street sees upside ahead for Robinhood. Take last Friday as one example. BTIG initiated coverage of the stock with a “buy” rating and a $125 price target, implying upside of more than 25% from the June 26 close. Adding to that, are some compelling fundamentals that could lift the stock even further — and HODU along with it.
More Than Hope for HODU
Potentially boosting the case for short turnaround usage of HODU are Robinhood’s favorable demographics. Calling the company “born to disrupt, built to compound," BTIG analyst Andrew Harte noted that Robinhood’s average customer is 36 years old with an average account balance of $13,000.
The latter figure may be dwarfed by the average balances at legacy brokers, but those shops typically serve older client bases. Robinhood is hip with younger investors — and as those market participants age and accumulate more wealth, the stock stands to benefit.
The company is capitalizing on that compelling demographic by becoming the one-stop shop for younger investors and savers. That effort also includes the already successful “super app” approach — one that could be an occasional catalyst for HODU as well.
“Robinhood is aggressively diversifying from a volatile trading-dependent business into a multi-product financial ecosystem, with prediction markets, crypto staking, banking, and private market access driving 15% YoY revenue growth to $1.07B in Q1 2026, even as core crypto revenue declined 47%,” noted EveryTicker.
HODU could also benefit from a rebound in cryptocurrency prices. Digital currency trading commissions are a key revenue contributor for Robinhood and were a drag on mostly solid first-quarter results.
“The revenue performance reveals the magnitude of crypto’s drag: without the $118M decline in crypto revenue, growth would have been 26% YoY. The fact that Robinhood still posted double-digit growth despite a 47% crypto collapse demonstrates the diversification strategy’s effectiveness,” added EveryTicker.
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