Bernstein has raised its price target for Robinhood (HOOD) stock to $160, with the firm emphasizing the long-term value of the company’s blockchain infrastructure over its cryptocurrency trading volume. This revised outlook, released ahead of Robinhood’s second-quarter earnings on July 29, is underpinned by a projected 2028 earnings per share (EPS) of $4.56, based on a 35x forward price-to-earnings (P/E) multiple.
The primary driver for Bernstein’s increased target is the anticipated contribution from Robinhood’s blockchain initiatives, including Robinhood Chain, prediction markets, and perpetual futures. According to Bernstein analysts, these ventures are expected to account for 18% of total revenue by 2027, growing to 23% by 2028. The firm estimates that prediction markets alone could generate $1.7 billion in revenue by 2028.
Supporting this optimistic view, Robinhood Chain is demonstrating steady network activity. Robinhood Wrapped ETH on the chain has seen a 2% gain in the past week, with daily trading volume currently near $44 million. These metrics suggest sustained user engagement, reflecting a broader market trend where investors are increasingly valuing companies that build foundational digital asset infrastructure over those primarily benefiting from speculative token rallies.
Bernstein suggests that developing the underlying infrastructure can yield more sustainable returns than simply collecting transaction fees. The firm views Robinhood Chain as a potential contributor to the broader crypto ecosystem, enhancing Ethereum’s scalability through additional Layer 2 infrastructure, which could lead to cheaper transactions and faster settlement times. Increased adoption of such networks may also improve accessibility to on-chain activity for retail users.
This strategic emphasis on infrastructure development aligns with a growing investor preference for foundational projects. The Robinhood Chain narrative illustrates how chain-level infrastructure can capture value independently of native token price movements, attracting investors who are shifting focus from speculative assets to execution layer projects. Bernstein anticipates that future infrastructure will be increasingly interconnected.
Despite the positive outlook, uncertainties persist regarding the long-term sustainability of Robinhood Chain’s growth and the precise future revenue contributions from its blockchain ventures. The competitive landscape also presents a factor that could influence Robinhood Chain’s adoption and revenue generation. Nevertheless, Bernstein’s updated price target signals a potential shift in market valuation for crypto-related companies, highlighting the significance of underlying blockchain technology.
Broader Context
Source materials place the factual news in this context: Robinhood’s second-quarter earnings arrive on July 29.
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