Bernstein Sees $1.7B Revenue in Robinhood Prediction Markets by 2028

Bernstein raised its price target for Robinhood (NASDAQ: HOOD) from $130 to $160, while maintaining an Outperform rating. The wealth management firm believes that the online brokerage is evolving into a diversified digital financial platform whose next phase of growth will be driven by prediction markets, tokenized assets, and blockchain infrastructure.

According to Bernstein analyst Gautam Chhugani, prediction markets could become one of Robinhood's fastest-growing businesses over the next several years. The firm projects that the segment will expand at a 64% compound annual growth rate, reaching approximately $1.7 billion in annual revenue by 2028.

Bernstein expects Robinhood's expanding product lineup, including prediction markets, perpetual futures, and tokenized securities, to meaningfully diversify the company's revenue away from its traditional brokerage business. The analysts estimate that these new asset classes could account for 18% of Robinhood's total revenue in 2027, rising to 23% by 2028.