Observed Signal · Sep 4, 2026 · Financials · Source: CNBC Investing · Impact: 1/5 · Sentiment: Positive
Deutsche Bank Raises Robinhood Price Target on Crypto Chain Revenue
Deutsche Bank analysts reiterated a 'buy' rating on Robinhood Markets and raised its price target from $115 to $136, implying a 9% upside, driven by the strong early performance of Robinhood Chain, a blockchain launched earlier this year for cryptocurrency trading. Analyst Brian Bedell noted that daily fee revenue from Robinhood Chain surged past expectations, totaling $10.8 million over the last five days, with an estimated $5.4 million in fee revenue to HOOD, surpassing the firm's prior third-quarter estimate of $4.6 million. The bank acknowledges limited visibility into the durability of this momentum but sees it as a positive driver. The stock has risen 20% this week and 41% over the past three months, with 24 of 29 analysts rating it a buy or strong buy.
Minor impact on adtech; pertains to analyst view on a trading platform's crypto revenue, not directly related to advertising or marketing technology.
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Key Takeaways & Evidence Grounding
- Deutsche Bank raised its price target on Robinhood to $136 from $115, maintaining a 'buy' rating.
- Robinhood Chain generated approximately $10.8 million in daily fee revenue over the last five days, beating Deutsche Bank's estimates.
- Robinhood's stock rallied 20% this week, partly due to its prediction markets efforts.
- 24 out of 29 analysts covering Robinhood have a buy or strong buy rating.
- Robinhood Chain revenue reached $4.01 million on September 2, 2026, a significant acceleration from under $200k in mid-August.
Connected Companies & Entities
3 Entities mapped“Robinhood Markets could see more upside, particularly as one of its latest cryptocurrency-related ventures takes off, according to Deutsche ...”
“The bank has a buy rating on Robinhood. It raised its price target on shares to $136 from $115.”
“Of the 29 analysts covering Robinhood, 24 have a buy or strong buy rating on the stock, LSEG data shows.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Bernstein says Robinhood to rally on prediction markets
Bernstein reiterates an outperform rating on Robinhood Markets with a $160 price target, implying roughly 69% upside. Analyst Gautam Chhugani highlights prediction markets and new products as key growth drivers. Prediction market revenue surged six-fold year-over-year in Q3, with non-sports contracts up 30%. Rothera, a derivatives exchange and clearinghouse, became Robinhood's 14th business to cross $100 million in annualized revenue. The crypto business is evolving into an infrastructure play, with HOOD chain seeing $100 billion in on-chain exchange volumes and about 200 equity tokens live. Of 33 analysts, 27 rate the stock buy or strong buy. Shares slipped 7% premarket after Q3 report.
Robinhood Chain: Neobroker's Blockchain Becomes Revenue Driver
Robinhood has launched Robinhood Chain, an Ethereum Layer 2 built on the Arbitrum stack, which has become a significant revenue stream. Live since early July 2026, the chain generates substantial daily fees, occasionally exceeding $6 million, driven largely by speculative meme coin trading and tokenized stocks. However, it faces criticism from companies like AMC and OpenAI over unauthorized stock tokens, as well as concerns about thin liquidity, regulatory gray areas, and a single point of failure in its sequencer. Despite these issues, analysts at Bernstein project the chain could generate $160 million in annual fees by 2028. Robinhood's Q2 revenue grew 32% to $1.31 billion, though crypto trading revenue fell 38% to $100 million, highlighting the chain's role in offsetting declines.
Robinhood revenue rises 12% as event contracts offset crypto slump
Robinhood reported third-quarter revenue of $1.42 billion, matching Wall Street expectations and marking a 12% year-over-year increase. Despite a 55% drop in cryptocurrency revenue to $120 million, transaction-based revenue grew 19% to $867 million, driven by a 500% surge in event contracts revenue and strong options trading (up 31% to $399 million). Shares fell about 3% in after-hours trading as total transaction revenue slightly missed estimates. The company continues to diversify its brokerage app into a broader financial services platform, investing in wealth management, subscriptions, and event contracts. Net deposits reached $15.7 billion in the quarter, representing a 17% annualized growth rate. CFO Shiv Verma noted that event contracts on crypto movements provided an alternative for investors amid the crypto slump.
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