Bernstein Sees Tokenized Assets and Prediction Markets Driving Robinhood Growth

Wall Street analysts at Bernstein are bullish on Robinhood Markets' future growth prospects. In a recent research note, they lifted their price target for Robinhood stock to $160 from $130 while maintaining an Outperform rating.

The analysts argue that tokenized assets and prediction markets could become the next big drivers of revenue growth for the company, surpassing traditional retail crypto activity. According to Bernstein, prediction markets are expected to grow rapidly, with segment revenue projected at $1.7 billion by 2028, representing a compound annual growth rate of 64%.

Tokenized equities, which allow users to buy and sell fractions of ownership in companies on the blockchain, are also seen as a major long-term opportunity for Robinhood. The analysts point out that the company's blockchain infrastructure strategy, including its use of Arbitrum-based layer-2 network, is a key differentiator.