Robinhood stock rebounded more than 2% on Thursday after Bernstein maintained its $160 target, betting that tokenization and prediction markets can offset weaker crypto trading. The stock traded at $88.55 on Friday, up approximately 2.25% after moving between $83.68 and $89.48 during the session. Despite the rebound, HOOD remained about 26% below its July high near $120.
Market Outlook
Bernstein maintained its Outperform rating and $160 price target following Robinhood’s second-quarter results. From Thursday’s closing price, the target represents potential upside of about 81%. Goldman Sachs also retained a Buy rating but reduced its 12-month target from $137 to $118. The revised target still implies more than 33% upside, though it reflects a more cautious outlook for near-term growth.
Business Expansion
Robinhood reported second-quarter net revenue of $1.31 billion, up 32% from $989 million a year earlier. The result exceeded analysts’ consensus estimate of approximately $1.26 billion. Bernstein’s bullish case rests partly on Robinhood’s expansion beyond conventional stock and cryptocurrency trading. The brokerage identified prediction markets, tokenized stocks and blockchain infrastructure as longer-term revenue drivers.
Revenue Drivers
Total event-contract revenue reached $156 million during the quarter, exceeding the $100 million generated by crypto trading. Bernstein described Rothera as the third-largest U.S. exchange in its category. The figures show that prediction markets are becoming a larger part of Robinhood’s business as weaker digital-asset activity weighs on transaction revenue.
