Bernstein sees 87% upside for Robinhood as prediction markets surge, says ‘crypto jitters’ are temporary

Despite Robinhood reporting a year-over-year drop in Q4 crypto revenue, leading to a stock dip, Bernstein analysts view this weakness as temporary "crypto jitters." They reiterated their $160 price target, implying 87% upside, noting that overall platform revenue hit a record, supported by options and equities growth.

Bernstein highlighted that solid metrics like funded accounts and Gold subscribers reached highs, and Robinhood's prediction markets are a key growth area, accounting for 14% of transaction revenue. The firm also pointed to future growth drivers like the joint venture Rothera and the launch of Robinhood Chain, an Ethereum Layer 2 testnet.

The analysts see $60 to $75 as an accumulation range for the stock and remain positive on Robinhood's transition toward a broader information and capital markets ecosystem, prioritizing family investing, private markets, and tokenization.

(Source：The Block)