Bernstein Lifts Robinhood Target to $160 as Prediction Markets Surge

Robinhood is broadening its business beyond retail stock and cryptocurrency trading into prediction markets and a wider range of financial products. Morgan Stanley sees that expansion strengthening the brokerage’s ecosystem, increasing customer engagement and diversifying revenue. The strategy matters because it could reduce Robinhood’s dependence on volatile crypto activity while giving the company more ways to benefit from elevated trading demand.

Morgan Stanley upgraded Robinhood to Overweight in its latest report and raised its price target to $150. The bank said growth in event contracts, continued trading activity and the rollout of additional financial products could support more than 40% upside in the shares. It added that the investment case remains attractive even when volatility in Robinhood’s cryptocurrency business is excluded.

Robinhood Markets has expanded beyond its core stock and cryptocurrency trading businesses into prediction markets, where customers use event contracts to wager on outcomes including elections, sports and economic data. The push has opened a fast-growing revenue stream for the online brokerage and highlights how retail trading platforms are broadening their products to sustain user engagement and reduce reliance on traditional transaction volumes.

For the second quarter ended June 30, 2026, Robinhood generated $156 million from prediction markets, marking the first time the business surpassed both cryptocurrency and equities revenue. Crypto trading produced $100 million, down 38% from a year earlier, while prediction markets emerged as the platform’s largest transaction-based contributor. The results underscored strong growth in event contracts, though Robinhood shares still traded lower following the earnings report.