Robinhood’s crypto push will fuel a rally that will see its share price surge by 92% to $105 over the next year.
Analysts at Bernstein made that prediction in a Monday note to investors, which would put the trading platform’s market cap at $73 billion.
“We expect [Robinhood] to continue gaining market share in trading revenues driven by strong product pipeline across equities, crypto, and disruptive products such as prediction markets and tokenisation,” wrote analysts led by Guatam Chhugani in the note.
The bullishness comes as Robinhood faces increased competition from both traditional financial players like Morgan Stanley, and industry-native firms like Kraken — not to mention fintechs like Revolut and eToro.
Growing competition
The growing competition is a sign of the times.
Investment firms have elbowed into the fray after US President Donald Trump’s new administration paved the way for crypto-friendly regulations, which are expected to create more certainty around digital assets.
Robinhood has the advantage of having provided crypto-trading services since 2021, Bernstein wrote.
This has enabled the firm to control some 30% of the US retail crypto-trading market, the analysts estimated.