Analyst predicts massive upside for Robinhood post S&P 500 inclusion

Core Insights - Robinhood has been recognized as an emerging "super-app" with significant growth potential, expanding into new markets such as retail trading and blockchain tokenization [1] - Bernstein analysts have set a valuation of $160 per share for Robinhood, indicating a 36% upside from its recent closing price of $117.28, which saw a 15.8% increase due to its inclusion in the S&P 500 [2] - Robinhood's market share in U.S. retail trading has nearly doubled, now accounting for 12% of revenues in equities and crypto, with equity trading share increasing from 2.8% in 2023 to 5.5% in 2025 [4] S&P 500 Entry and Market Share Gains - Robinhood was officially announced as a member of the S&P 500, effective Wednesday, alongside AppLovin and EMCOR Group [3] - The company's options business has grown to represent 24% of retail volume, more than double its levels from 2023 [4] Tokenization and Wealth Management Focus - Analysts highlight tokenization as Robinhood's "next frontier," suggesting it could play a pivotal role in creating a liquidity market for private equity tokenized securities [5] - Robinhood is diversifying into wealth management and subscription models, with its Gold membership currently having approximately 3.5 million users paying $5 per month for various benefits [6] Revenue Growth Projections - Bernstein forecasts Robinhood's revenue to grow from $2.9 billion in 2024 to $6.8 billion in 2026, reflecting a compound annual growth rate (CAGR) of 51.7% [7] - The management's product velocity and monetization strategies have been praised, indicating a strong ability to scale quickly [7] Regulatory Considerations - Robinhood's primary revenue sources, including payment for order flow and crypto trading, may face regulatory scrutiny, which could impact its growth momentum [9]