Bernstein Just Boosted Its Robinhood Price Target to $160. Here's What's Driving the HOOD Price Upgrade.

When astir investors deliberation astir Robinhood Markets (NASDAQ: HOOD), they astir apt deliberation astir equity trading and, to a lesser extent, crypto trading. But that communicative has present been turned connected its head.

Just cheque retired Robinhood's latest net report, for the 2026 2nd quarter. The institution generated $156 cardinal successful gross from prediction-market trading, $129 cardinal from equity trading, and $100 cardinal from crypto trading.

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Robinhood's quarterly net study

This is improbable to beryllium an anomaly, either. According to the concern steadfast Bernstein, Robinhood's prediction-market gross is acceptable to turn astatine a compound yearly complaint of 64% implicit the adjacent fewer years.

Other caller areas of trading -- including perpetual futures and tokenized equities -- could besides spot a large spike successful the coming years. No wonder, then, that Bernstein precocious ratcheted up its terms people from $130 to $160. Currently, the banal trades for conscionable $90.

A "generational shift"?

Crypto investors should instrumentality note. Bernstein refers to a "generational shift" successful however retail investors trade.The caller instauration of prediction-market trading astatine Robinhood has been highly successful, and the institution present has the standard (14 cardinal monthly progressive users) to marque aboriginal merchandise launches conscionable arsenic successful.

So what's driving this "generational shift"? Most apt it has to bash with the changing fortunes of the crypto market. In a bullish marketplace cycle, it's imaginable to marque wealth with spot crypto trading. But successful a bearish marketplace cycle, specified arsenic the 1 Wall Street is experiencing now, it's overmuch much difficult.

Just cheque retired the database of the apical 20 cryptocurrencies by marketplace cap. Only a fistful are successful the greenish this year. Even Bitcoin, the marketplace behemoth, is down astir 50% implicit the past year. No wonder, then, that Robinhood saw a 38% alteration successful crypto trading gross for the quarter.

The relation of prediction markets

And that's wherever prediction markets travel into the picture. It's imaginable to marque wealth with prediction-market contracts, adjacent successful a flat-to-down market. Investors are simply betting "yes" oregon "no" if a definite lawsuit occurs.

So, let's accidental you don't person overmuch condemnation that Bitcoin volition support its existent terms of $65,000. You could easy bargain "yes" lawsuit contracts for the crypto to deed a assortment of little terms points, including $55,000, $50,000, and $45,000. Or you could conscionable arsenic easy bargain "no" lawsuit contracts for Bitcoin hitting 1 of galore higher terms points.