Overview
- Bernstein raised its price target for Robinhood from $130 to $160 on July 20, citing the firm’s new prediction‑market and on‑chain products as the main growth drivers.
- Rothera, Robinhood’s CFTC‑licensed prediction‑market JV with Susquehanna, began routing event contracts earlier this year and now handles about 16% of Robinhood’s event‑contract volume.
- Robinhood Chain launched its Arbitrum‑based mainnet in July and was reported to process roughly $3.1 billion in DEX trading in its first week, a metric investors see as an early sign of on‑chain demand.
- Bernstein’s model assumes prediction‑market revenue could reach $1.7 billion by 2028 and applies a 35x forward P/E to a 2028 EPS forecast of $4.56, while warning that regulatory, competitive, and execution risks could quickly overturn that thesis.
- The market is watching audited Q2 results due July 29 for proof that launch‑week volumes will translate into durable revenue and higher revenue per user, and the outcome will shape whether these products reshape retail finance or remain niche add‑ons.