Robinhood (HOOD) shares opened higher on Tuesday after the fintech giant announced a strategic partnership with Crypto.com and its prediction markets platform, OG.com.
The deal expands HOOD’s event-contract offering and gives it access to another federally regulated trading venue ahead of the U.S. football season and November midterm elections.
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At its intraday peak, Robinhood stock was up a whopping 90% versus its year-to-date low.
www.barchart.comWhy the Crypto.com Deal Matters for HOOD Stock
In a press release today, Robinhood said it will begin routing selected football event contracts through OG.com, an independent derivatives exchange and clearinghouse regulated by the CFTC.
As part of this agreement, the fintech firm has also taken minority equity stakes in both OG.com and Crypto.com, with investments priced in line with a recent transaction valuing them at $5 billion and $20 billion, respectively.
The announcement is bullish for HOOD stock because prediction markets have rapidly become an important source of growth for the Nasdaq-listed firm.
It generated a record $156 million in event-contract revenue in fiscal Q2 and is expanding election-related contracts ahead of the November midterms as well.
Adding OG.com as another venue could improve contract variety and pricing while allowing HOOD to capitalize on heightened demand around football and political events.
Bernstein Remains Bullish on Robinhood Shares
Despite significant outperformance in recent months, Bernstein analysts believe Robinhood shares will rip higher from here through the remainder of 2026.
In a research note today, the investment firm maintained its Outperform rating on HOOD, with a $160 price target indicating potential upside of more than 30% from here.
The bullish view extends well beyond prediction markets, with Bernstein increasingly focused on Robinhood’s emerging blockchain business as another significant source of revenue.
Analysts at the firm said Robinhood Chain has generated about $39 million in cumulative fees since its July 1 launch and estimated that the network could generate about $160 million in annual fees by 2028. They also highlighted more than $50 billion in decentralized-exchange volume and about $1.5 billion in total value locked.
All in all, prediction markets, tokenized assets, and Robinhood Chain can diversify the fintech firm beyond traditional trading and crypto, supporting its long-term earnings growth.
What’s the Consensus Rating on Robinhood?
While not nearly as bullish as Bernstein, other Wall Street analysts also remain constructive on HOOD shares.
The consensus rating on Robinhood sits at “Strong Buy,” with the mean price target of nearly $126 indicating further upside potential from current levels.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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