GEMI Vs HOOD – Morgan Stanley Slashes Price Targets Amid Gemini Buyout Hopes

• Morgan Stanley also lowered its outlook for Robinhood, while maintaining ‘Equal Weight’ ratings on both stocks.
• Retail sentiment around Gemini on Stocktwits turned ‘extremely bullish’ over the past day over buyout speculation.
• Analysts see meaningful upside for both stocks based on consensus targets.

Gemini’s (GEMI) stock fell in morning trade on Friday after Morgan Stanley slashed its price target to $6 from $13, a cut of more than 50%.

The firm also lowered its price target on Robinhood (HOOD) to $95 from $147. It kept an ‘Equal Weight’ rating on both stocks, according to a note to investors cited by TheFly. 

Morgan Stanley said better Q1 earnings for brokers and exchanges should modestly beat consensus, but flagged that the forecast for the group is currently 4% to 5% below the consensus average for 2026-27. 

GEMI’s stock tumbled more than 3% in morning trade to around $4.72, which puts the potential upside of Morgan Stanley’s price target at over 27%. On Stocktwits, retail sentiment around the crypto exchange rose to ‘extremely bullish’ from ‘neutral’ territory over the past day, and chatter jumped to ‘normal’ from ‘extremely low’ levels. 

HOOD’s stock fell 1.13% in the morning trade to around $69.33. Retail sentiment around Robinhood on Stocktwits improved to ‘bullish’ from ‘neutral’ territory, and chatter increased to ‘high’ from ‘normal’ levels over the past day.

Gemini Might Be Looking To Sell Its EU, UK Operations

The surge in retail sentiment around Gemini comes after a CoinDesk report that stated potential buyers might be interested in buying the company’s now-shuttered operations in Europe and the U.K. Rather than a full takeover of the exchange, the unnamed parties are looking to just secure the regulatory licenses to operate in those regions. 

The move comes after Gemini announced in February that it was only going to keep its businesses open in the U.S. and Singapore, while shutting down operations in the U.K., European Union, and Australia. 

In Europe, the company operated under a mix of national registrations and a Markets in Crypto-Assets (MiCA) license, allowing it to offer services across the bloc. In the U.K., it is registered with the Financial Conduct Authority as an electronic money institution and appears on the regulator’s cryptoasset register.

GEMI’s stock has been volatile since its September 2025 IPO. Shares were priced at $28, opened above $37, and closed their first session near $32, reflecting strong initial demand. Since then, the shares have fallen more than 80%. 

Consensus estimates tracked by Koyfin place Gemini’s average analyst price target at $10.22, representing a 116% upside from current levels. The stock is covered by 10 analysts, with one rating it ‘Strong Buy’, two giving it a ‘Buy’ rating, and six recommending ‘Hold’.

Robinhood Faces Pressure Despite Diversified Revenue Push

Robinhood has been under scrutiny amid softer crypto trading activity, though it has sought to highlight diversification beyond digital assets. Citizens cut its price target on HOOD’s stock to $155 from $180 and kept an ‘Outperform’ rating on the shares. 

Earlier this week, the U.S. Treasury said it is working with The Bank of New York Mellon (BK) and Robinhood to expand access to government-backed Trump Accounts. Under the arrangement, BNY will act as financial agent, while Robinhood will serve as brokerage and initial trustee. The partnership is expected to provide a steady stream of fee-based revenue for both companies, offering Robinhood insulation from the volatility in cryptocurrency markets. 

Consensus estimates place Robinhood’s average price target at $106.98, implying a 50% upside from current levels. The stock is covered by 27 analysts, with four rating it ‘Strong Buy’, 15 giving it a ‘Buy’ rating, and five recommending ‘Hold’. Only two analysts recommended ‘Sell’, with one rating the stock a ‘Strong Sell’.

How Do Retail Traders Feel About HOOD, GEMI Stocks?

Some traders on Stocktwits indicated they were adding more Gemini shares to their portfolio amid speculation around asset sales

Meanwhile, retail traders on HOOD’s stream expressed frustration about the stock trading lower even amid strength in the cryptocurrency market as Bitcoin (BTC) neared $73,000.

Over the past year, HOOD stock has risen 127% while shares of GEMI have fallen more than 80% since their IPO.

Read also: Bitcoin Reclaims $72,000 While CPI Data Shows Inflation Holding At 3.3%

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