Cantor Fitzgerald analysts are highlighting a shift in investor focus from short-term trading slumps to long-term growth potential for Coinbase and Robinhood, particularly through the development of prediction markets. Despite expectations of weak first-quarter 2026 results due to declining crypto trading volumes, analysts maintain “overweight” ratings on both stocks, with raised price targets reflecting improving sentiment and new product initiatives.
Both companies are diversifying their revenue streams beyond the volatile crypto trading landscape, with prediction markets emerging as a significant growth area. Analysts expect that these new offerings, combined with tokenization and private market access, will help mitigate the impact of softer market conditions. While current trading trends remain tied to crypto price cycles, the future growth trajectory will increasingly depend on product expansion and innovation.
Investors should closely monitor regulatory developments surrounding prediction markets, as ongoing legal debates could influence market dynamics. The outcome of these discussions may determine the viability and profitability of these new revenue streams for Coinbase and Robinhood.
Source: coindesk.com