Predicting the market becomes a new trend. Goldman Sachs Group, Inc. gives Robinhood (HOOD.US) a "buy" rating.

Goldman Sachs Group, Inc. recently released a research report, giving Robinhood (HOOD.US) a "buy" rating with a target price of $167. Management pointed out that customer engagement remains strong and emphasized that the diversified revenue structure has been predicted in the market. In addition, the company's product pricing is constantly evolving. The Robinhood management noted that, given its business diversification, any seasonal slowdown seen in the past half year may weaken in the future. The company believes that over time, it should be able to significantly increase its revenue from cryptocurrency through market share growth, as the increased trading volume from more active traders would counteract potential pricing pressure (lower fees for active traders). Management emphasized that the markets prediction for pricing in the future may rise. The prediction market is a key focus area and growth driver for Robinhood. Management believes that with its strong distribution channels, it has a strong advantage in this field. It continues to expand its product range from sports and political events to other areas. The recently announced joint venture in the prediction market will allow Robinhood to generate more revenue from the prediction market value chain. Management believes that the prediction market in the United States may develop in a traditional exchange market structure, while non-US prediction markets may develop on the blockchain. Robinhood also sees two expansion opportunities beyond the tokenized services already offered in Europe: 1) tokenizing private equity in the United States; 2) tokenizing stocks in Asia. However, the company believes that regulatory changes must occur before launching tokenized services in the United States and Asia. Management believes that the cryptocurrency market structure legislation will pass by clarifying the authority of regulatory agencies and providing additional clarity on tokenization, which will support the adoption of digital assets, but also notes the uncertainty in the final draft of the law. The company continues to invest in the prediction market and states that its regulatory agencies are fully aware of its strategy.