Bernstein reaffirmed its Outperform rating on Robinhood Markets, sticking with a $160 price target as the company's crypto ventures extend well beyond simple trading. The brokerage highlighted Robinhood’s growing footprint in tokenization and market infrastructure as key factors behind this optimism.
Robinhood Chain, the firm's blockchain initiative, has handled over $12 billion in decentralized exchange volume and completed more than 150 million transactions since its inception. This marks a significant step as Robinhood pushes into tokenized assets and decentralized finance, diversifying its revenue streams beyond traditional brokerage services.
Another standout product, Robinhood Earn, has attracted upwards of $200 million in customer deposits, while tokenized U.S. stocks are now accessible through Robinhood Wallet in more than 120 countries. These moves broaden Robinhood’s global reach and strengthen its position in the evolving crypto ecosystem.
Rothera and Prediction Markets Fueling Growth
Bernstein also spotlighted Rothera, Robinhood’s prediction markets platform, which processed over 3.5 billion contracts and generated $17 million in revenue during the second quarter. This segment has been a rapid growth driver, especially highlighted during major events like the FIFA World Cup. Bernstein projects prediction markets could bring in $586 million in revenue by 2026, a sharp rise from an estimated $150 million in 2025, potentially accounting for 17% of transaction-based revenue next year.
Shares of Robinhood closed Wednesday at $89.84, reflecting approximately 78% upside relative to Bernstein’s target. Despite a 3.6% dip to $86.60 on Thursday, the implied upside remains near 85%, underscoring investor confidence in the company’s crypto strategy and innovation efforts.
This material is for informational purposes only and does not constitute financial advice.
