Bernstein reaffirmed its positive outlook on Robinhood after the trading platform reported a year-over-year decline in fourth-quarter crypto revenue. Shares fell following earnings, reflecting a 38 percent drop in crypto transaction revenue to $221 million, even as total net revenue rose 27 percent to a record $1.28 billion. The firm maintained its $160 price target, citing temporary weakness in digital asset activity.
Analysts described the crypto slowdown as cyclical rather than structural, noting continued growth in funded accounts, subscription products and retirement assets. Prediction markets contributed roughly 14 percent of transaction-based revenue in the quarter, with volumes exceeding expectations. Robinhood’s expansion into banking and subscription services also added new recurring revenue streams.
Bernstein pointed to longer-term initiatives, including the planned launch of a prediction market joint venture and the development of Robinhood Chain, as part of a broader shift beyond retail-driven crypto trading. The firm said current valuation levels reflect downside scenarios, positioning the stock within a wider capital markets and financial infrastructure transition.
