Bernstein Sees Robinhood Riding Prediction Market Wave to $160

Retail investors are shifting their focus from traditional crypto trading to prediction markets, according to Bernstein. The investment firm recently boosted its price target for Robinhood Markets (HOOD) to $160, citing the growing popularity of prediction-market trading.

Robinhood's latest earnings report showed that it generated $156 million in revenue from prediction-market trading, surpassing its equity and crypto trading revenue for the first time. Bernstein expects this growth to continue, with a compound annual rate of 64% over the next few years.

Prediction markets allow investors to make money even in flat-to-down markets by betting on specific events or outcomes. This can provide a more stable source of income than traditional crypto trading, which has been volatile in recent times.