Robinhood (HOOD) stock jumped 5% in early trading on Wednesday, extending gains from the prior session after the SEC announced the removal of long standing day trading limit for small investors.

The Securities and Exchange Commission (SEC) approved removing a $25,000 minimum asset balance requirement for day traders. Instead, the new framework allows investors of all account sizes to trade more freely, as long as they have enough money to cover the risk of each trade.

“This is unequivocally bullish for Robinhood, in my view,” said Sean Farrell, head of digital assets at Fundstrat on Tuesday night.

Farrell noted Robinhood will benefit from the rule change, given that the average account balance for its users is much smaller than that of traditional brokerage firms.

The analysts also noted Robinhood could be a stock investors look to jump into if the recent surge in crypto begins to fade.

“Perhaps Robinhood is one that will offer some, I don’t want to say safe haven, but something that may be a bit immunized from crypto-specific risks here in the near term,” said Farrell.

On Tuesday Bernstein analysts reaffirmed their Outperform rating on Robinhood, with a $130 price target given crypto’s resilience in recent weeks, and growth in prediction markets.

Revenue from user bets on event outcomes is expected to grow 286% year-over-year in 2026, accounting for roughly 10% of total revenue and 17% of transaction-based revenue.

“We expect 2026 to be catalyst-rich for prediction market volumes as U.S hosts the Football world cup in the summer and political activity heats up in H2 on U.S mid term elections,” wrote analyst Gautam Chhugani and his team.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance