What to know:
- Robinhood shares gain in pre-market trade after Bernstein raises its target toward $160.
- Bernstein projects Robinhood prediction market revenue will reach $1.7 billion by 2028.
- Robinhood will report Q2 earnings on July 29, with Wall Street expecting $1.27B revenue.
Robinhood Markets (HOOD) climbed in the pre-market session on Monday following a target increase from Bernstein. Among the crypto-related stocks, Robinhood was the top performer before market open. Bernstein maintained its Outperform rating but increased the price target to $160 from $130 due to product growth.
Analyst Gautam Chhugani said prediction market revenue could reach $1.7 billion by 2028. He linked that estimate to growth from the company’s Rothera exchange joint venture. The forecast reflected expansion into perpetual futures and tokenized equity offerings across its platform.
As per Yahoo Finance data, Robinhood ended its trade at $99.96 on July 17. The stocks declined by $6.06 in the regular session. However, they recovered to trade at $102.25 in the pre-market session with gains of $2.29, or 2.29, from the last closing price.
Also Read: Circle President Sells $30.8 Million in CRCL Shares as SEC Filings Reveal 10 Transactions
Why Bernstein Sees 60% Robinhood Upside
The new target indicates over 60% upside potential from the monthly low seen on Friday. Robinhood stocks had declined to just below the $100 mark prior to Monday’s recovery. The firm expects newer business lines to support stronger future revenue and earnings through 2028.
Chhugani had predicted that revenues would see a 32% compound annual growth rate from 2026 to 2028. He predicted 47% growth in the earnings before interest, taxes, depreciation, and amortization (EBITDA). His earnings-per-share prediction implied a 49% compound annual growth rate.
The $160 target was calculated using a 35x forward earnings multiple as per Bernstein. The valuation was also based on a 2028 earnings-per-share estimate of $4.56.
According to Bernstein, Robinhood and Kalshi have a cooperative yet competitive dynamic. The broker continues distributing Kalshi contracts to their clients. Furthermore, the broker provides event contracts using Rothera that account for 16% of total event contracts of the firm.
Why Prediction Markets May Boost Robinhood Earnings
According to Chhugani, operating its own exchange will enable the brokerage to have control over prices and improve its economics. Robinhood can still benefit from Kalshi’s marketplace while developing its separate exchange business.
LedgerX was taken over by Robinhood and Susquehanna International Group in December 2025, and the two later rebranded it as Rothera. Event contracts were offered on the platform in May, which increased their exposure to the prediction market business.
According to Bernstein, second quarter results should meet analysts’ expectations. Bernstein believes that prediction markets revenue will offset weaker crypto activity.
The company plans to announce its second quarter earnings on July 29. The brokerage investors will be interested in how its prediction market and crypto platforms performed.
The cryptocurrency market stayed weak ahead of the earnings release. Bitcoin is trading around $64,600 despite facing resistance above $65,000 for more than a month.
Also Read: Hyperliquid Unveils Permissionless HIP-4 Prediction Market Plans
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment