Robinhood Stock Falls Despite Crypto.com’s Prediction Markets Partnership Talks & Bernstein’s $160 Target

• Robinhood stock closed 6.57% lower at $94.91 despite reports that the company is in talks with Crypto.com to expand its prediction markets platform
• Bernstein raised its Robinhood price target to $160 from $130, saying prediction markets, perpetual futures, and Robinhood Chain could become major long-term revenue drivers
• The brokerage expects Robinhood’s prediction market business to generate $1.7 billion in annual revenue by 2028, eventually surpassing crypto trading, while investors now await the company’s upcoming Q2 earnings

Robinhood stock had plenty of reasons to rally heading into the weekend. Reports suggested the trading platform was exploring a new partnership with Crypto.com to strengthen its prediction markets business. Meanwhile, Wall Street firm Bernstein became even more bullish on the company’s long-term prospects. Yet investors chose a different path. Robinhood stock finished Friday sharply lower. This showed how earnings expectations and market sentiment continue to outweigh positive headlines, at least for now.

Also Read: Social Security Payments Continue as DOGE Cut 8,000 Workers and Left 1 Rep per 4,000 Beneficiaries

Why Robinhood Stock Slipped Despite Bullish Prediction Market News

Shares of Robinhood Markets closed 6.57% lower at $94.91 on Friday. But shares recovered about 2.8% in premarket trading on Monday. This comes as reports emerged that the brokerage is in discussions with Crypto.com over a potential prediction markets partnership. According to The Wall Street Journal, the proposed deal would allow Robinhood users to access Crypto.com’s yes-or-no event contracts through the broker’s prediction markets hub. It should be noted that negotiations remain ongoing and no agreement has been finalized.

A Robinhood spokesperson told the publication the company would continue working with multiple exchanges to give customers access to a “diverse and resilient marketplace.” Crypto.com has not publicly commented on the reported talks.

Also Read: CLARITY Act Bitcoin Target Hits $200K as BlackRock Fidelity and Goldman Back It With $30T

Bernstein Says Prediction Markets Could Overtake Crypto Revenue

The reported Robinhood and Crypto.com discussions arrived alongside another bullish development. Bernstein raised its price target on Robinhood stock to $160 from $130. It maintained its Outperform rating and pointed to the company’s expanding business beyond traditional crypto trading.

According to Bernstein analyst Gautam Chhugani, prediction markets, perpetual futures, and Robinhood Chain could become major contributors to future revenue. The brokerage projects Robinhood prediction markets will generate $1.7 billion annually by 2028. This represents a 64% compound annual growth rate between 2026 and 2028.

Bernstein also expects prediction markets to eventually surpass crypto trading as Robinhood’s largest revenue stream. The firm noted that Robinhood’s event contracts gained traction during the FIFA Club World Cup. This is helping the platform become one of the largest prediction market operators by trading volume within weeks of launch.

Despite the optimistic outlook, investors appeared to remain cautious ahead of Robinhood’s second-quarter earnings report, scheduled for July 29. Bernstein expects growth in prediction markets to offset softer crypto trading volumes. This is despite the fact that the market may be waiting for stronger financial results before rewarding the company’s expanding strategy.

Also Read: Solana ETF Investment Trends Reveal Unbroken July Buying Streak