Robinhood Says Its 'Cortex' AI Investment Tool Will 'Bridge The Gap' Between Institutional And Retail Investors: Here Is What It Can And Can't Do

Robinhood Markets Inc. ( HOOD ) has launched Robinhood Cortex on Wednesday, with early access granted to Gold members, an AI-powered investment tool designed to offer real-time analysis, trade suggestions, and market insights.

What Happened: Announced at the company's second annual Gold keynote event, Cortex is part of a broader push to enhance its premium services, alongside the launch of Robinhood Strategies and Robinhood Banking.

Robinhood Cortex aims to democratize access to high-quality market intelligence, historically reserved for institutional investors. The tool will analyze real-time market movements, generate stock summaries, and provide trade-building insights based on user preferences and risk tolerance.

While it will not execute trades, Cortex is positioned as a powerful AI-driven assistant that can help investors navigate volatile markets with data-driven recommendations.

"High-quality, premium investment and market analysis has historically been reserved for institutional investors and the rich," said Abhishek Fatehpuria, Robinhood's VP of Brokerage Product. "Over time, Robinhood Cortex will completely transform the Robinhood experience as we strive to bridge that gap and put a premium research assistant right in your pocket."

See Also: Jim Cramer On Lululemon Optimism: ‘Don’t Know How They Could Be Pleased’ As Stock Drops Over 10% In After-Hours Trading

Why It Matters: The rollout of Cortex follows Robinhood's introduction of Robinhood Strategies, a robo-advisory service offering actively managed portfolios with a capped annual fee for Gold members, and Robinhood Banking, a private banking platform that includes high-yield savings, wealth management, and luxury financial services.

Robinhood’s consensus price target is $59.53 from 19 analysts, ranging from $90 to $11. The latest ratings from Compass Point, Deutsche Bank, and Keefe, Bruyette & Woods average $60.67, implying a 38.13% upside.

By leveraging AI, the company aims to strengthen customer engagement and drive growth in its subscription-based Robinhood Gold service.

Price Action: Robinhood closed at $43.99 on Thursday, down 1.65%, and fell 0.16% after hours to $43.92. The stock is up 11.54% year-to-date and 118.53% over the past year.

According to the Benzinga Edge ranking, Robinhood has a medium- and long-term price trend but lacks a valuation metric. Register for Benzinga Edge to gain more in-depth knowledge.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.