Coinbase and Robinhood Pin Growth Hopes on Emerging Prediction Markets

According to Cantor Fitzgerald analyst Ramsey El-Assal, prediction markets are becoming a key growth area for both Coinbase and Robinhood, as investors shift their focus from backward-looking quarterly results to forward-looking demand trends and the companies' product roadmaps. This comes as both companies are expected to report weaker results for the first quarter of 2026 due to a decline in crypto prices and trading activity. Despite this, El-Assal maintains an 'overweight' rating on both stocks, citing improving sentiment and long-term growth drivers. The analyst notes that while current trading trends are tied to crypto price cycles, the next phase of growth will depend more on product expansion and new use cases, with prediction markets being a significant area of focus. Both Coinbase and Robinhood have seen their shares rally in recent weeks, with Coinbase up about 18% quarter-to-date and Robinhood climbing roughly 40% in April. However, regulatory challenges, such as a recent lawsuit filed by the New York Attorney General's office against Coinbase and Gemini over their prediction market offerings, could impact the growth of these markets.