Robinhood Markets (NASDAQ:HOOD | HOOD Price Prediction) stock is up 7% today, rising from $79.09 to $84 and change, while Webull (NASDAQ:BULL) shares are surging 8%, climbing from $5.82 to $6.30. Both stocks are reacting to a landmark regulatory shift that retail traders have been waiting years to see.
The SEC has eliminated the $25,000 pattern day trader (PDT) rule, removing the minimum equity requirement that previously blocked smaller accounts from executing more than three day trades in a rolling five-day period. Thus, the SEC just opened the floodgates for millions of retail traders who were previously locked out of active day trading.
For Robinhood and Webull, whose entire business models are built around empowering the self-directed retail trader, this is about as direct a catalyst as it gets. Hence, for both of these companies, a favorable regulatory posture from the SEC carries outsized weight here.
PDT Rule Removal Expands Robinhood’s Addressable Market
Robinhood’s core customer base has always skewed toward smaller, younger retail accounts. The old $25,000 PDT threshold was a hard ceiling on engagement for exactly that demographic. With that barrier gone, Robinhood’s total addressable market just expanded meaningfully.
The company’s momentum heading into this catalyst is already strong. Full-year 2025 revenue hit a record $4.47 billion, with Q4 2025 revenue of $1.28 billion, up 27% year over year. Robinhood also posted Q4 EPS of $0.66 versus an estimate of $0.59, a clean beat that showed the platform’s monetization engine is working. For more on how Robinhood has been executing on its growth story, this earlier deep-dive on the company’s earnings trajectory is worth revisiting.
Robinhood’s Gold subscribers reached 4.2 million, up 58% year over year, and total platform assets hit $324 billion, up 68% year over year. The prediction markets segment generated $147 million in new revenue, a product line that didn’t even exist in prior-year comparisons. Robinhood isn’t just a brokerage anymore. It’s building toward a financial super-app, and the PDT rule removal accelerates the on-ramp for its target users.
Prediction market participants are pricing in continued upside. The daily direction market on Polymarket shows a 92.5% probability that HOOD stock closes higher today, and the April 2026 price target market shows a 62.5% probability of hitting $90 and a 29.5% probability of reaching $100. Wall Street consensus sits at $103.77, implying the market still has room to run if the revenue story holds.
Webull Catches a Double Catalyst
Webull stock’s move today is sharper, driven by two separate catalysts landing in the same session. Investors are also pointing to the termination of the company’s restrictive financing agreement as a separate bullish development, removing an overhang that had weighed on sentiment. Two positive catalysts landing on the same session explains why Webull is outpacing Robinhood’s gain today.
The fundamentals are catching up as well. Webull’s full-year 2025 revenue rose to $571 million, up 46% year over year, with Q4 2025 revenue of $165.2 million, up 53% year over year, beating the estimate of $161.35 million. Customer assets reached an all-time high of $24.6 billion, up 81% year over year, and full-year net deposits came in at $8.6 billion, up 91%.
The community is buzzing about Webull’s valuation. With a market cap of $2.81 billion against that revenue run rate, the stock looks comparatively lean next to Robinhood’s $65.3 billion market cap. Retail traders are openly discussing a potential short squeeze and a path back to double-digit pricing, given that BULL stock traded as high as $62.90 just a year ago. The analyst consensus targets $11.67, implying 84% upside from recent levels.
What to Watch Now
One r/options trader captured the FOMO energy around these names this week, writing, “I anchored to prices and when I didn’t get those prices, stocks ran away from me. I missed $HOOD at $65.” That kind of sentiment, frustration at missing the move, tends to pull more buyers in as stocks continue to climb.
Watch for whether today’s gains hold into the close. Both stocks are still well below their year-to-date starting prices, with HOOD down 32% year-to-date and BULL down 19% year-to-date. So, any further clarity from the SEC on implementation timelines could shape the next leg of this move.
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