Wall Street experts point to Robinhood’s expanding blockchain operations and prediction markets as justification to overlook its minor third-quarter earnings shortfall announced on Tuesday.
Bernstein maintained its outperform assessment and $160 price target, whereas StoneX sustained a buy recommendation along with a $170 target.
Robinhood announced $1.42 billion in revenue, while its cryptocurrency income dropped 55% year-over-year to $120 million.
StoneX specialist Mark Palmer stated that the adverse market response, which caused Robinhood shares to drop 10% shortly after the report, represented an excessive reaction.
“We interpret this differently,” Palmer stated, pointing out that an unrealized deficit within the Robinhood Ventures Fund I reduced earnings per share by $0.07. After stripping away that deficit and alternative factors, adjusted earnings per share exceeded consensus expectations by $0.60.
At the same time, Bernstein analysts headed by Gautam Chhugani expressed that the digital asset division is evolving from simple retail speculation into foundational infrastructure. They project that prediction platforms, perpetual swaps, and the July debut of Robinhood Chain will account for roughly 25% of overall revenue by the year 2028.
Robinhood Chain generated $26 million in net income during its initial quarter on the mainnet. Without that contribution, cryptocurrency revenue declined 6% compared to the second quarter, totaling $94 million.
Bernstein explained that Robinhood captured less income per dollar of digital asset volume, largely driven by the expansion of its stablecoin offering, Robinhood Earn, which currently surpasses $500 million in customer assets. Earn produces lower yields than standard digital asset trading, pulling down the blended average. When adjusting for this offering, the income generated per dollar traded remained relatively flat relative to the preceding period.
Prediction markets represented an additional area of expansion, bringing in $173 million in revenue for the quarter. Bernstein highlighted that non-sporting agreements doubled their portion to roughly 30%, driven primarily by digital currencies, raw materials, and economic agreements.
Originally published at https://www.theblock.co/news/business/2026-10-28-robinhood-earnings-miss-crypto-weakness-wall-street-bullish-outlook-432011.
