Bernstein has maintained its Outperform rating on Robinhood Markets with a $160 price target, citing the company's expansion into tokenization and market infrastructure. The firm's crypto business has grown beyond trading, with new products such as Robinhood Chain, tokenized stocks, and Robinhood Earn creating opportunities for growth. Robinhood Chain has processed over $12 billion in decentralized exchange volume and completed 150 million transactions since launch, while Robinhood Earn has accumulated over $200 million in customer deposits.
Tokenization Growth
Tokenized U.S. stocks are now available through Robinhood Wallet in over 120 countries, extending the company's reach beyond its core brokerage platform. Bernstein also highlighted Rothera, Robinhood's exchange, which has processed over 3.5 billion contracts and generated $17 million in second-quarter revenue.
Rothera Exchange
The exchange has become the third-largest prediction market exchange in the United States, with management expecting more prediction-market activity to migrate onto Rothera over time. Bernstein sees Robinhood's ownership of Rothera as a potential business-to-business platform for other Futures Commission Merchants in the future.
Financial Infrastructure
Bernstein believes Robinhood's strategy increasingly resembles a financial infrastructure business, with the company's products, including Robinhood Chain, Bitstamp, and tokenized stocks, diversifying revenue over time. Despite outlining several risks, including changes to payment for order flow and U.S. regulation, Bernstein maintains its positive outlook on Robinhood.
