Bernstein Raises Robinhood's Price Target to $160 Amid Growth in Prediction-Market Trading
Robinhood Markets (NASDAQ: HOOD) has seen a significant shift in its revenue streams, with prediction-market trading becoming the largest contributor. In Q2 2026, it generated $156 million from this segment compared to $129 million from equity trading and $100 million from crypto trading. Investment firm Bernstein upgraded Robinhood's price target from $130 to $160, citing a projected compound annual growth rate of 64% for prediction-market revenue over the next few years. Bernstein attributes this change to what it calls a 'generational shift' in retail investing behavior driven by market volatility and declining crypto trading revenues. Robinhood's user base has grown to 14 million monthly active users, giving it scale to expand into new areas like perpetual futures and tokenized equities. The firm is well-positioned to capitalize on these trends due to its understanding of the typical crypto investor mindset. The stock currently trades at $90 per share, significantly below Bernstein's revised target. This upgrade reflects confidence in Robinhood’s ability to adapt and innovate amid a challenging market environment for traditional trading models.
Topics: Bernstein Prediction Markets Robinhood Stock Price Upgrade