- Bernstein maintained an Outperform ranking on Robinhood Markets with a $160 worth goal, citing increasing crypto infrastructure quite than buying and selling alone.
- Analysts consider Robinhood Chain, tokenized shares, Bitstamp, and Robinhood Earn will grow to be the corporate’s subsequent main progress engines.
- Regardless of weaker crypto buying and selling volumes, Robinhood’s occasion contracts and blockchain merchandise proceed gaining momentum.
Bernstein has reaffirmed its bullish outlook on Robinhood Markets, arguing that the corporate’s cryptocurrency technique is evolving effectively past buying and selling right into a broader blockchain and tokenization ecosystem.
The funding agency maintained its Outperform ranking and $160 worth goal, implying vital upside from Robinhood’s current share worth. Based on Bernstein, the corporate’s long-term alternative more and more lies in constructing digital asset infrastructure quite than relying solely on crypto buying and selling income.
Analysts consider Robinhood’s increasing blockchain merchandise place the corporate to learn from the rising adoption of tokenized monetary property.
Robinhood Chain Continues Increasing
Bernstein highlighted a number of milestones achieved by Robinhood Chain since its launch.
Based on the report, the blockchain has generated greater than $12 billion in decentralized alternate quantity whereas processing over 150 million transactions.
The agency’s Robinhood Earn product has additionally surpassed $200 million in deposits, whereas Inventory Tokens at the moment are out there by way of Robinhood Pockets in additional than 120 nations, increasing international entry to tokenized equities.
Analysts consider these merchandise exhibit Robinhood’s technique of constructing a broader on-chain monetary ecosystem.
Prediction Markets Turn into a Main Enterprise
One other key contributor has been Rothera, Robinhood’s event-contract alternate.
Since launching in June, the platform has processed greater than 3.5 billion contracts, together with 2.1 billion throughout the second quarter alone, producing roughly $17 million in income.
Bernstein mentioned administration expects an rising share of prediction market buying and selling emigrate onto Rothera over time whereas additionally exploring alternatives to supply the platform to different Futures Fee Retailers (FCMs) by way of a business-to-business mannequin.
Occasion Contracts Overtake Crypto Buying and selling
The report famous that Robinhood’s income combine continues shifting as crypto buying and selling volumes average throughout the trade.
In the course of the second quarter, occasion contracts generated $156 million in income, surpassing crypto buying and selling income of $100 million.
Because of this, Bernstein lowered its 2026 crypto buying and selling income forecast by almost 49%, reflecting expectations that general cryptocurrency buying and selling exercise will stay softer than beforehand anticipated.
Nevertheless, analysts consider newer blockchain companies will greater than offset that slowdown over the long run.
Regulatory Dangers Nonetheless Stay
Regardless of its optimistic outlook, Bernstein acknowledged that Robinhood continues to face a number of regulatory dangers.
Potential modifications affecting the corporate’s payment-for-order-flow enterprise mannequin, evolving cryptocurrency laws, and continued uncertainty surrounding whether or not sure digital property qualify as securities may all impression future progress.
Even so, Bernstein believes Robinhood’s increasing tokenization technique, blockchain infrastructure, and rising suite of digital monetary merchandise place the corporate for continued long-term progress because the monetary trade more and more strikes on-chain.
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