Bernstein's analyst Gautam Chhugani highlighted that Robinhood's revenue from prediction markets surged six-fold year-over-year in the third quarter, with non-sports contracts also seeing a 30% increase. The firm noted that Rothera, a derivatives exchange, has become Robinhood's 14th business to exceed $100 million in annualized revenue, further supporting the stock's potential.
Chhugani emphasized the transformation of Robinhood's crypto business from retail trading to an infrastructure model, with significant adoption reflected in $100 billion in exchange volumes since the launch of HOOD chain and strong interest in stock token trading.
Among the 33 analysts covering Robinhood, 27 recommend buying the stock, although shares have declined over 16% in 2026 and fell another 7% in premarket trading following the third-quarter report