Bernstein Bullish on Robinhood Despite Crypto Revenue Slump
Robinhood's fourth-quarter earnings revealed a stark 38% decline in crypto trading revenues, yet Bernstein analysts see an 87% upside potential for the stock. The brokerage posted record $1.28 billion net revenues fueled by options and equity trading, offsetting digital asset weaknesses.
"This is a temporary compression, not a structural flaw," said Gautam Chhugani, maintaining Bernstein's $160 price target. Retail crypto volumes cratered 52% year-over-year, dragging HOOD shares down 9% post-earnings.
The platform's pivot toward becoming a multi-asset financial hub appears to be paying dividends. While Bitcoin and ethereum traders retreated, traditional market participants drove 27% overall revenue growth—proving diversification hedges against crypto winter volatility.
