Bernstein reiterated its $160 price target on Robinhood, implying 85% upside, as tokenization and prediction markets fuel growth beyond crypto trading.
Bernstein analysts reiterated an Outperform rating and a $160 price target on Robinhood Markets Inc. (HOOD), implying roughly 85% upside from current levels. The call came as the brokerage's crypto strategy shifts from a trading-focused business toward a broader tokenization and financial infrastructure platform, the analysts wrote.
Robinhood carries an Alpha Score of 33/100, a Weak rating, in the Financials sector. For more details, see the HOOD stock page.
The firm pointed to four growth drivers beyond spot crypto trading: Robinhood Chain, tokenized equities, the Bitstamp acquisition, and Robinhood Earn. Robinhood Chain, a decentralized exchange, has generated more than $12 billion in volume and processed over 150 million transactions since its launch. Robinhood Earn, a yield-bearing deposit product, has attracted more than $200 million in deposits, CEO Vlad Tenev said.
Robinhood's prediction market business, operated through the Rothera exchange, has also gained traction. The exchange processed more than 3.5 billion contracts, including 2.1 billion during the second quarter alone. It generated roughly $17 million in quarterly revenue and is now the third-largest exchange of its kind in the U.S., Bernstein said. "Management expects a greater share of prediction market flow to migrate to Rothera over time," the analysts wrote.
The shift into new revenue streams comes as crypto trading revenue declined nearly 40% in the second quarter, reflecting weaker industry volumes. Bernstein cut its 2026 crypto trading revenue estimate by 49% as a result. Tenev dismissed the idea that the decline signaled a structural slowdown. He argued that digital assets remain in a long-term growth cycle and that Robinhood is becoming increasingly diversified across products and revenue streams.
Tenev noted that Robinhood's Legend trading platform and its credit card business each generate more than $100 million in annual revenue. The company's longer-term strategy centers on expanding financial ownership through tokenization, private-market access, retirement products, and global investing. Tenev said the company ultimately aims to increase U.S. equity ownership from roughly 65% of households to more than 90%.
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