Robinhood election trade revenue set to top $2 billion
05 Nov 2024
Barclays keeps an Equal Weight rating on Robinhood (HOOD) with a $23 price target after the company said it will be adding election contracts to its platform.
While the near-term revenue upside will be “quite modest” from the contracts, the launch is “another step on Robinhood’s longer-term product roadmap,” the analyst tells investors in a research note. Barclays thinks Robinhood’s election volumes are likely to be “some fraction” of the $2.5B traded across the U.S. election and popular vote winner on PolyMarket.
If Robinhood were to see volumes in the next days weeks similar to those seen on PolyMarket to date, this would represent low-to mid-single digit upside to Q4 numbers, which would not recur, the firm says.