Robinhood election revenue to be ‘quite modest,’ says Barclays

Barclays keeps an Equal Weight rating on Robinhood (HOOD) with a $23 price target after the company said it will be adding election contracts to its platform with the roll out to customers beginning today. While the near-term revenue upside will be “quite modest” from the contracts, the launch is “another step on Robinhood’s longer-term product roadmap,” the analyst tells investors in a research note. Barclays thinks Robinhood’s election volumes are likely to be “some fraction” of the $2.5B traded across the U.S. election and popular vote winner on PolyMarket. If Robinhood were to see volumes in the next few weeks similar to those seen on PolyMarket to date, this would represent low- to mid-single digit upside to Q4 numbers, which would not recur, the firm says.