Robinhood’s stock gained more than 2% on Thursday, trading at $88.55, after Bernstein reiterated a strong buy rating with a $160 price target. This optimistic projection suggests an upside of about 81% from the previous close, despite the shares still lagging about 26% below their July peak near $120.
Q2 Revenue Surpasses Expectations
The brokerage’s latest earnings report showed a 32% year-over-year increase in net revenue, hitting $1.31 billion. Analysts had anticipated around $1.26 billion, so the actual figure reflects solid growth. event contracts generated $156 million in revenue, outpacing the $100 million earned through crypto trading. Despite these gains, Robinhood’s stock price remains below its key moving averages 20-, 50-, and 100-day which could signal ongoing caution among investors.
Bernstein's Bullish Outlook Hinges on New Revenue Streams
Bernstein’s confidence stems from Robinhood’s push beyond traditional stock and crypto trading. The firm points to emerging areas like tokenized stocks, prediction markets, and blockchain infrastructure as significant growth drivers. Robinhood’s recent launch of the Rothera exchange in June, which has handled more than 3.5 million transactions, bolsters that long-term growth story.
Meanwhile, other major financial institutions are more conservative. Goldman Sachs, though maintaining a Buy rating, lowered its 12-month price target to $118 from $137, reflecting a more cautious stance. Barclays and Needham also trimmed their price targets slightly after initially raising them prior to earnings.
This content is for informational purposes and not financial advice.
