Robinhood (HOOD) shares fell over 5% on July 10. The stock retreated after failing to hold gains near $120. Shares are currently testing a key support level around $109.
The decline suggests investors are taking profits after a 40% rally over the past month. This sell-off occurred despite significant price target increases from major financial institutions.
Morgan Stanley raised its price target for Robinhood to $124 from $95. Barclays increased its forecast to $122 from $82. Both firms cited strong trading activity and growth potential from new products.
These upgrades follow the successful launch of Robinhood Chain, a Layer-2 network. The platform has recorded significant decentralized exchange (DEX) volume since its debut.