Bernstein Sees Three Robinhood Businesses Contributing About 25% of Revenue by 2028

Bernstein expects prediction markets, perpetual futures and Robinhood Chain to contribute about 25% of Robinhood’s revenue combined by 2028, while StoneX and Bernstein kept their price targets after the company’s third-quarter results missed expectations.

StoneX’s target is $170, and Bernstein’s is $160, a $10 difference. Bernstein also described Robinhood’s crypto business as moving toward an infrastructure role.

Crypto activity was weaker in the quarter. Robinhood generated $120 million in crypto transaction revenue, down 55%, while crypto notional trading volume totaled $50 billion, down 38%. The Robinhood app accounted for $21 billion in volume, down 48%, and Bitstamp recorded $29 billion, down 28%. Robinhood’s third-quarter earnings miss included net revenue of $1.424 billion, up 12% year over year, and net income of $476 million, down 14%. Diluted earnings per share was $0.51, below a $0.55 analyst estimate.