Coinbase and Robinhood Turn to Prediction Markets for Future Growth

Investors are increasingly looking beyond the recent weak quarter for crypto trading and focusing on future products, including prediction markets, to drive growth for Coinbase and Robinhood, says Cantor Fitzgerald analyst Ramsey El-Assal. Despite an expected decline in first-quarter results due to a slump in crypto prices and trading activity, both companies are expected to benefit from newer offerings such as prediction markets. The analyst maintains an 'overweight' rating on both stocks, citing improving sentiment and long-term growth drivers, and has raised the price target for Coinbase to $250 and for Robinhood to $110. While regulatory challenges, including a recent lawsuit from the New York Attorney General's office, may impact the growth of prediction markets, they are seen as a key area of expansion for both companies, along with other initiatives such as tokenization and private market access.