Robinhood Stock Surges on Prediction Market Boom Amid Regulatory Hurdles
Robinhood shares climbed 2% Tuesday, extending a year-to-date rally exceeding 200%, as analysts tout prediction markets as a potential goldmine. Piper Sandler's Patrick Moley highlighted event contracts as a significant growth driver, with Kalshi's sports betting contracts fueling record activity through their 50-50 revenue share with Robinhood.
Regulatory headwinds persist as some states force Kalshi to halt sports betting operations, threatening the partnership's revenue stream. Despite this, 15 of 23 analysts rate Robinhood a buy, reflecting confidence in its post-meme-stock recovery and expansion into alternative trading products.