Coinbase and Robinhood Discover New Growth Potential in Prediction Markets

The growth prospects of Coinbase and Robinhood are being reevaluated by investors, who are now looking beyond the weak first quarter for crypto trading and focusing on the potential of prediction markets and other new products, according to Cantor Fitzgerald analyst Ramsey El-Assal. El-Assal noted that investors are increasingly viewing quarterly results as historical data and are instead focusing on future demand trends and product roadmaps, including the introduction of prediction markets. Both companies are expected to report weaker results for the first quarter of 2026 due to the decline in crypto prices and trading activity. Despite this, Cantor Fitzgerald has maintained an 'overweight' rating on both stocks, citing improving market sentiment and long-term growth prospects. The analyst has raised the price target for Coinbase to $250 and for Robinhood to $110. The companies' prediction markets offerings, launched this year, have attracted significant interest and are seen as a key driver of future growth. However, regulatory challenges, including a recent lawsuit filed by the New York Attorney General's office, may impact the development of these markets. The debate over whether prediction markets constitute gambling products is ongoing, with federal and state regulators holding different views. This issue is likely to be resolved by the U.S. Supreme Court.