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Robinhood Rallies as Analysts Lift Targets on Prediction-Market Growth

Investors now look to the Nov. 5 earnings report to validate the new revenue drivers.

Overview

  • Shares rose about 5% Monday to roughly $146, moving near the 52-week high of $153.86 after a multi-week rally.
  • Compass Point raised its price target to $161 with a Buy rating, CICC initiated Outperform at $155, and Bank of America maintains a Street-high $157 target.
  • CEO Vlad Tenev said prediction-market contracts topped 4 billion, and Compass Point estimates about $20 million in 3Q revenue and roughly $50 million in 4Q from the product.
  • Analysts note revenue of roughly $0.01 per prediction contract, implying about $40 million from the disclosed volumes in recent months.
  • The company reports third-quarter results on Nov. 5 after the close, with expectations near $0.51 EPS and about $1.18 billion in revenue, as valuation and technicals draw caution.