Needham upgraded Robinhood (HOOD) stock to Hold from Buy, with a price target of $40. Analyst John Todaro joins Market Domination to explain his motivation behind the call.

Todaro identifies two key benefits for Robinhood under a Trump presidency: "the pro-crypto regulation that's coming" and the appointment of a new SEC chair.

"We believe Robinhood will come out and launch a number of different crypto products," which he suggests will enable the company to expand market share and enter the meme crypto market, noting that platforms in this space "see outsized volume."

Todaro emphasizes that the primary catalyst for Robinhood centers on "changes at the SEC," adding, "That's where Robinhood's going to be able to capture most of the low-hanging fruit." Regarding reports of Hester Pierce being considered for SEC chair, Todaro tells Yahoo Finance, "I actually don't think you could have a more crypto person," suggesting her appointment would be "positive for crypto."

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This post was written by Angel Smith