Robinhood Primed for Rebound After Q1 Miss (1 minute read)
Bernstein maintains bullish outlook on Robinhood despite Q1 earnings miss, betting on crypto recovery and prediction markets growth to drive shares nearly double to $130.
What: Robinhood missed Q1 revenue and earnings targets with crypto revenue down 47% year-over-year, causing shares to drop 8%, but analyst firm Bernstein kept its "outperform" rating and $130 price target, projecting 2026 earnings 23% above consensus estimates.
Why it matters: The divergence shows how analysts view Robinhood's diversification beyond crypto cycles—prediction markets trading surged 320% year-over-year, banking deposits grew fivefold, and the company's new prediction markets exchange launches mid-2026, potentially offsetting crypto volatility.
Decoder
- EPS (Earnings Per Share): A company's profit divided by number of shares, used to measure profitability per unit of ownership
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization—a measure of operating performance before accounting adjustments
- Prediction markets: Platforms where users trade contracts on real-world event outcomes, like election results or sports games
Original article
Bernstein reaffirmed an "outperform" rating on Robinhood with a $130 price target after the Q1 earnings miss, projecting 2026 EPS of $2.65 (23% above consensus).