Mizuho says single-stock perpetual futures could boost Robinhood shares

Mizuho says single-stock perpetual futures could significantly benefit Robinhood shares, based on a survey showing substantial potential demand. The survey covered more than 600 active Robinhood users. The survey found that 94% would likely or very likely trade single-stock perpetual futures if the contracts became available. Mizuho analysts said 84% of respondents would use mostly or entirely new money for the contracts, suggesting limited displacement of existing equity trading. Mizuho managing director Dan Dolev described the findings as a potentially strong positive in a note on Wednesday.

Robinhood said on September 29 that Robinhood plans to introduce perpetual futures trading for U.S. users in the coming months. Robinhood also plans to offer round-the-clock trading in selected U.S. equities. However, Robinhood has not announced single-stock perpetual futures. Johann Kerbrat, Robinhood's senior vice president and general manager of crypto and international, recently said Robinhood had no single-stock perpetual futures plans to announce. Kerbrat also said Robinhood was still working through the SEC's latest innovation exemption concerning tokenized stocks.

Dolev said the timing remains uncertain but considered a single-stock perpetual futures launch plausible over the medium term. Mizuho maintained an Outperform rating and a $140 price target for HOOD, citing the possibility of the product arriving over the medium term. Coinbase filed in September to list perpetual futures linked to large-cap U.S. stocks, providing another indication of industry interest in the product.