Robinhood sees prediction markets in early stage of ‘supercycle,’ says Deutsche

Deutsche Bank keeps a Buy rating on Robinhood (HOOD) with a $160 price target following the company’s yes/no keynote event. The company showcased its latest prediction market features and management said they believe the prediction markets are in the early stages of a “supercycle,” the analyst tells investors in a research note. With increasing adoption and volume growth, these contracts could eventually reach trillions in volumes traded each year, according to Robinhood, the analyst adds. Deutsche estimates prediction markets in the U.S. could potentially reach at least 1 trillion contracts in 2027 and well over 5 trillion in 2029. Robinhood’s developments in prediction markets include making the contracts available on both the mobile app and Legend desktop, with real-time data and limit orders, the firm points out.