Robinhood Prediction Markets to Outpace Crypto Trading Revenue

Robinhood's prediction-market revenue is expected to surpass its crypto trading business in the second quarter, according to analysts at Bernstein and Piper Sandler.

The analysts, including Gautam Chhugani, project that Robinhood's prediction-market revenue will reach $1.7 billion by 2028, with new businesses such as prediction markets, perpetual futures, and Robinhood Chain accounting for 18% and 23% of the company's total revenue in 2027 and 2028, respectively.

This growth is attributed to increasing investor interest in prediction markets, particularly around the World Cup. Chhugani notes that while prediction-market trading may cool temporarily after the tournament ends, a longer-term structural shift in trading markets is underway.

Raise of price target by Bernstein analyst Gautam Chhugani to $160 from $130 reflects new market opportunities. This represents one of the highest targets on Wall Street for Robinhood's stock.