Robinhood's stock jumped over 2% in pre-market trading to $102.25 after Bernstein increased its price target from $130 to $160. This 60% upside potential from the recent close signals strong investor confidence fueled by anticipated growth beyond traditional brokerage services.
Prediction Markets as a Revenue Catalyst
Bernstein analyst Gautam Chhugani highlights prediction markets as Robinhood’s fastest-growing segment, expecting revenue to reach $1.7 billion by 2028. This implies a staggering 64% compound annual growth rate, underpinned by Robinhood's strategic acquisition and rebranding of LedgerX to Rothera exchange. The May 2026 launch of event contracts positions Robinhood competitively, capturing 16% of the platform’s event contracts. also Robinhood’s distribution of Kalshi contracts expands its footprint in this emerging market, diversifying revenue streams significantly.
Tokenized Equities and Layer-2 Infrastructure
Bernstein also identifies tokenized equities as a key long-term growth avenue. Robinhood Chain, built on Arbitrum's layer-2 solution, supports tokenization of real-world assets. Analysts forecast the on-chain real asset market to surge from $35 billion today to between $2 trillion and $4 trillion by 2030, driven largely by expanding adoption beyond treasury securities and private credit. Institutional interest is growing, evidenced by recent integrations such as Alpaca and Broadridge Financial Solutions enhancing shareholder governance through tokenization. Robinhood’s infrastructure places it well to benefit from this shift.
The firm’s Q2 earnings release scheduled for July 29 is expected to show $1.27 billion in revenue, providing an imminent data point to validate these optimistic projections. Bernstein’s target of $160 is based on a 35x forward earnings multiple and 2028 EPS estimate of $4.56, reflecting confidence in sustained growth led by these innovative segments.
This material is informational and not financial advice.
