Robinhood Shares Seen Double by Year's End
Robinhood shares seen double by year's end, according to Bernstein analysts, who predict significant growth in crypto and prediction markets. The retail trading platform's stock could top $130 per share, an 81% increase from its current price.
Retail Trading and Crypto Growth
Bernstein analysts expect 23% year-over-year growth in Robinhood's crypto-based revenue and 286% growth in the company's revenue from prediction markets. Bitcoin's potential rally to $150K by 2026 year-end and $200K by mid-2027 is expected to drive this growth.
Crypto Embrace and Prediction Markets
CEO Vlad Tenev has been actively investing in crypto, with the company building a Layer 2 blockchain on Ethereum, acquiring crypto exchange Bitstamp, and launching prediction markets in partnership with Kalshi. Crypto trades accounted for half of the company's transaction-based revenues in the fourth quarter of 2024, a 700% jump.
Prediction Markets and Crypto Revenue
Bernstein analysts see major events fuelling a boom in prediction markets, including the Football World Cup in the summer and political activity heating up in H2 on US mid-term elections. By the end of 2027, crypto could be the single-largest revenue source for the company.
Record-Breaking Bitcoin Rally
The analysts expect a record-breaking Bitcoin rally to fuel a revival in retail crypto trading. Robinhood's net total revenue was $2.9 billion in 2024, with a 58% jump, and the company recorded net income of $1.4 billion.
Key Takeaways
- Robinhood shares are expected to nearly double by year's end, reaching $130 per share.
- Crypto-based revenue is expected to grow 23% year-over-year, while prediction markets revenue is expected to grow 286%.
- Bitcoin's potential rally to $150K by 2026 year-end and $200K by mid-2027 is expected to drive growth.
- Crypto could become the single-largest revenue source for Robinhood by the end of 2027.
Frequently Asked Questions
What is driving the growth of Robinhood's crypto-based revenue?
The growth is driven by the expected rally of Bitcoin and the increasing adoption of crypto trading on the platform.
How will the Football World Cup and US mid-term elections impact Robinhood's prediction markets?
These events are expected to fuel a boom in prediction markets, driving growth and revenue for Robinhood.
