Bernstein Backs Robinhood Growth With $160 Price Target

Robinhood’s internal initiatives are reshaping its revenue model, moving the company well beyond retail crypto trading. The firm’s Robinhood Chain has processed over $12 billion in decentralized exchange volume and 150 million transactions, while the Robinhood Earn program has secured more than $200 million in customer deposits. Furthermore, the company has expanded its reach by making tokenized U.S. stocks available in over 120 countries through its wallet.

A significant portion of the bullish outlook rests on Rothera, the company’s prediction market exchange. Since its launch in June, Rothera has processed 3.5 billion contracts and generated $17 million in second-quarter revenue alone. Bernstein suggests that by controlling its own trading stack—encompassing exchange, clearing, and brokerage functions—Robinhood is capturing a larger share of transaction economics, a strategy mirrored by industry peers like Coinbase and DraftKings.

Despite the optimism, regulatory hurdles persist. Bernstein highlights that the company’s reliance on payment for order flow remains a sensitive point, and the broader digital asset sector faces ongoing scrutiny from the Securities and Exchange Commission. However, analysts believe that Robinhood’s transition into an infrastructure-heavy business model provides a competitive moat that justifies the significant upside potential from current share prices.