Robinhood Markets Inc. (HOOD) surged over 12% on Monday, closing at a record high of $136.72 and leading the S&P 500 (SPX). Investor optimism was fueled by strong growth in the brokerage’s prediction markets business. Year-to-date, HOOD stock has surged over 260%.
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For context, Robinhood Markets is a financial services company that enables users to trade stocks, ETFs, options, and cryptocurrencies, as well as participate in prediction markets.
Robinhood Prediction Markets Drive Record Trading
On Monday, Robinhood CEO Vlad Tenev announced on social media that the platform has surpassed 4 billion event contracts traded in its prediction markets, including 2 billion in Q3 alone. Notably, event contracts are financial instruments that let users bet on the outcome of specific events, such as elections, sports games, or other widely followed happenings.
The growth in platform assets and active participation in Robinhood’s products, like prediction markets, shows the company’s offerings are gaining traction. This momentum has boosted investor confidence in Robinhood’s long-term growth potential, contributing to the recent surge in its share price.
Top Analyst Stays Bullish on Robinhood’s Event Contracts
On Wall Street, analysts remain moderately bullish on HOOD stock. Recently, five-star-rated analyst Patrick Moley at Piper Sandler raised his price target from $120 to $140 while keeping his Buy rating. Moley highlighted that event contract volumes at Kalshi, Robinhood’s partner for prediction markets, are on pace for a record month in September, driven largely by the launch of NFL and NCAA football markets.
Moley estimates that Robinhood users make up roughly 25%–35% of daily Kalshi trading volumes. Meanwhile, Moley also notes that revenues from Robinhood’s event contract offering are on track to annualize at over $200 million in September alone.
Is Robinhood Stock a Good Buy?
According to TipRanks’ consensus, HOOD stock has a Moderate Buy rating, based on 12 Buys and six Holds assigned in the last three months. The Robinhood Markets share price target of $127.06 implies a 7.07% downside over current trading levels.
