Bernstein forecasts Robinhood's prediction markets will generate $1.7B, overtaking cryptocurrency revenue by 2028
According to Bernstein analysts, Robinhood's revenue projections have been increased for 2026 and 2028, though the firm's $160 HOOD price target remains steady.
According to Bernstein analysts, prediction markets are poised to emerge as a significant incremental revenue generator for Robinhood Markets (HOOD), the popular trading platform, with potential to eclipse its cryptocurrency-related income streams.
By 2028, prediction markets are anticipated to contribute as much as $1.7 billion in revenue for Robinhood, eclipsing the estimated $1.6 billion expected from crypto-based activities during the same timeframe, based on projections from Bernstein analysts disclosed to Cointelegraph this Monday.
The financial analysts project that Robinhood's prediction market revenues will climb to $1.7 billion by 2028, up from approximately $650 million anticipated for this year, representing around 18% of Robinhood's forecasted $9.4 billion total revenue for 2028.
These projections arrive just one day prior to Robinhood's third-quarter 2026 earnings release and underscore the expanding role that prediction markets are playing as a revenue contributor for the retail-oriented trading platform.
For Robinhood's Q3 performance, Bernstein anticipates a 13% quarter-over-quarter revenue increase to approximately $1.5 billion, propelled by expanding equity notional volumes, increased options activity, higher event contract volumes, and a rebound in cryptocurrency trading activity.
While maintaining its $160 price target without modification, Bernstein has elevated Robinhood's revenue projections by 3% for 2026, 4% for 2027 and 3% for 2028, attributing the adjustments to enhanced assumptions regarding equities and cryptocurrency revenues.
On Monday, the Nasdaq-listed shares appeared set to decline at market open, with premarket trading activity pushing the stock price down to $93.60, based on Yahoo Finance data. Over the trailing 12-month period, HOOD stock has experienced a decline exceeding 29%.