Robinhood Shares Soar as $160 Target Gains Attention Amid Crypto Expansion

Robinhood Markets' shares have seen significant attention due to predictions that its stock price will reach $160, implying strong upside from recent trading. Analysts at Bernstein have maintained an Outperform rating and this target on Robinhood.

The firm's crypto business is expanding beyond trading revenue, with key areas of growth including Robinhood Chain, tokenized stocks, Bitstamp, and Robinhood Earn. The latter has attracted over $200 million in deposits, allowing users to engage with the platform beyond trading stocks or crypto assets.

Rothera, Robinhood's prediction market exchange, has processed more than 3.5 billion contracts since its launch in June. This figure exceeded 2.1 billion contracts in the second quarter alone, generating $17 million in revenue. Event-contract revenue reached $156 million, surpassing crypto trading revenue of $100 million during this period.

Bernstein analysts pointed to tokenization and prediction markets as future growth drivers for Robinhood's crypto business. However, they also noted risks around regulation, including possible changes to payment-for-order-flow rules that could affect the firm's core brokerage model.