Robinhood Expands Prediction Markets to Europe Amid Surging Stock Performance

Robinhood Markets (HOOD) is making strategic moves to capitalize on the growing demand for event-based trading. The company's stock soared to a record $142 this week as it prepares to launch its prediction markets product in the UK and broader European markets. CEO Vlad Tenev revealed that users have already traded over 4 billion event contracts since the platform's introduction ahead of the 2024 U.S. election.

The fintech firm is currently in discussions with the UK's Financial Conduct Authority to secure regulatory approval. Robinhood is simultaneously expanding its offerings to include major sporting events, tapping into the same risk-appetite that drove its meme stock and crypto trading popularity. The strategy appears financially sound—Q2 net revenue jumped 45% to $989 million while maintaining disciplined cost growth of just 12%.

This international expansion marks Robinhood's latest effort to diversify beyond its retail trading roots. The prediction market push comes as the company's stock enjoys a 275% year-to-date rally, fueled by strong execution and growing adoption of its newer product lines.