Compass Point Bullish on Robinhood Amid Prediction Market Surge
Compass Point analysts maintain a bullish stance on Robinhood Markets Inc., anticipating accelerated growth in prediction market revenue. The investment bank projects a 100% quarter-over-quarter increase to $20 million for Q3, outpacing the expected 35% rise in transaction-based revenue.
Robinhood's foray into sports betting, including NFL and college football wagering since August, aligns with seasonal gambling trends. The platform's crypto trading fees and staking rewards further bolster its revenue diversification strategy as prediction markets gain mainstream traction in the U.S. financial ecosystem.