Bernstein Updates Robinhood Markets Share Price Target To $160, Citing Strong Growth Potential In Prediction Markets Over Traditional Crypto
Financial analysts continue to express growing confidence in Robinhood Markets‘ (NASDAQ: HOOD) strategic evolution, with Bernstein recently elevating its outlook on the fintech company’s shares. The firm hiked its 12-month price target for HOOD to $160 from $130 while maintaining an Outperform recommendation. This move underscores expectations that newer revenue streams, particularly in prediction markets and tokenized assets, may deliver more robust expansion than the firm’s legacy cryptocurrency trading segment.
Robinhood closed today at over $106 per share on strong trading, up over 7%. Its 52-week high is around $153 per share.
Robinhood has positioned itself as more than a basic retail brokerage or crypto venue. Bernstein highlights how the company is broadening its offerings into dynamic areas expected to outpace conventional operations.
Prediction markets have emerged as a standout performer, with analysts anticipating this segment could eclipse crypto revenue contributions as soon as the current quarter.
Projections include roughly $150 million in prediction market revenue for Q2, supported by high-volume activity on platforms like Rothera.
Longer-term forecasts are even more ambitious. Bernstein envisions prediction market revenue climbing to approximately $1.7 billion by 2028, representing a 64% compound annual growth rate.
This trajectory benefits from major sporting events, regulatory-compliant structures, and Robinhood’s ability to leverage its extensive user network for competitive pricing and accessibility, including discounts for premium subscribers.
Meanwhile, crypto trading faces near-term challenges from reduced industry-wide volumes.
Bernstein adjusted its 2026 crypto revenue projections downward by 49%, interpreting the softness as a temporary cycle rather than a fundamental shift.
This contrast allows prediction markets to shine as the fastest-growing area, potentially comprising a larger share of transaction-based income.
Tokenization of equities and real-world assets adds another layer of opportunity.
Robinhood’s blockchain developments, such as its dedicated chain, enhance capabilities in decentralized finance and on-chain assets.
The broader market for these tokenized products could expand dramatically—from around $35 billion today to between $2 trillion and $4 trillion by 2030—creating substantial headroom for growth.
Complementary innovations, including perpetual futures, AI-driven trading agents, and compute-linked products, further expand the total addressable opportunity to a fee pool potentially worth over $70 billion.
The revised price target is grounded in forward-looking financials, incorporating a 2028 earnings-per-share estimate of $4.56 (above street consensus) and a consistent 35-times multiple.
This valuation reflects anticipated revenue diversification and earnings momentum through the end of the decade.
As Robinhood prepares to release its second-quarter results later this month, market participants will scrutinize performance in these emerging categories.
The company’s shift toward a multifaceted platform—blending traditional brokerage with cutting-edge financial products—positions it for greater resilience amid market fluctuations. For investors, this update from Bernstein signals potential asymmetric upside as Robinhood capitalizes on product development beyond its crypto trading and investing services.
