Predict market revenue or surpass the crypto business for the first time! Robinhood (HOOD.US) welcomed a “cross-era” platform transformation, and many investment banks gave “buy” ratings

The Zhitong Finance App learned that investment bank Bernstein and Piper Sandler analysts said this week that trading platform Robinhood (HOOD.US)'s revenue from the prediction market may surpass cryptocurrency trading revenue as early as the second quarter.

Bernstein analyst Gautam Chagani wrote in a note to clients on Monday that the three months ending June could be the quarter “predicting market revenue surpassing cryptocurrencies for the first time.” Chagani, who maintained a “buy” rating on the stock, raised Robin Hood's price target from $130 to Wall Street's highest price of $160 to reflect new market opportunities.

Additionally, Piper Sandler analyst Patrick Morley said that his forecasting model also reflects a similar view that in the second quarter and the remaining two quarters of this year, the predicted market revenue will surpass cryptocurrencies.

Over the past few months, analysts have highlighted the shift of exchanges such as Robinhood, Coinbase, and Gemini Space Station Inc. to the prediction market, while cryptocurrency trading declined. The decline in cryptocurrency trading comes as the price of Bitcoin extends its decline to levels not seen since 2024. Meanwhile, the Soccer World Cup became a major catalyst, fueling investors' interest in predicting the market.

Bernstein's Chagani said that now that the World Cup is over, “it is natural to expect a slight market reversal,” yet the market may be “missing out on a cross-era platform transformation in the trading market.” As Robinhood expands its partnership with Rothera, he expects market revenue to grow to $1.7 billion by 2028, up 64% from 2026. Rothera, one of the newest players in the forecasting market, began accepting bets in May. The startup Rothera is a joint venture between Robinhood and Susquehanna International Group, and its former owner, Miami International Holdings Inc., still retains a small share.

According to models developed by analysts Bernstein, the new asset classes, including prediction markets, perpetual contracts, and Robinhood Chain, will contribute 18% of the company's projected revenue in 2027 and 23% of the company's projected revenue in 2028, respectively.

Needham analyst John Todaro raised Robinhood's price target from $97 to $123 on Tuesday and gave it a “buy” rating. Analysts say the company has shown continued strength in almost all indicators, and the latest monthly data shows the accelerated growth of stocks, options, and event contracts, as well as a rebound in cryptocurrency activity.

According to the data, Robinhood is scheduled to announce its second-quarter results on July 29. Analysts expect the company's adjusted profit to increase by about 4% year-on-year, while revenue surged 28%.