Analysts at investment bank Compass Point believe Robinhood stock will continue to rise, pointing to market growth expectations and revenue from crypto trading fees and staking rewards.
Professional sports are a significant tailwind for Robinhood. When the retail brokerage reports third-quarter earnings next month, Robinhood said revenue from prediction markets grew faster than revenue from processing customer trades, analysts wrote in a note Monday.
Compass analysts said prediction market revenue is likely to increase 100% from the previous quarter to about $20 million for the three months ending Sept. 30. Meanwhile, Compass analysts expect transaction revenue to grow 35% over the same period.
In the United States, people typically spend more time gambling in the fall, when professional sports seasons such as basketball and football begin. But prediction markets are on par with the functionality of some sportsbooks, so bettors are navigating a vast array of choices.
Robinhood will likely generate $50 million in revenue in the fourth quarter “combined with all quarters of the NFL season,” the analysts wrote, referring to America’s most popular pastime.
robin hood It started Through our partnership with prediction market Carsi, we will allow customers to bet on NFL and college football games in August. Still, Robinhood currently offers predictive markets on other subjects, including economics, culture, and technology.
Robinhood offers commission-free trades in stocks and cryptocurrencies, but it charges customers a 1-cent fee for trades involving event contracts, analysts wrote.
Robinhood shares rose more than 5% to nearly $146 on Monday, according to . Yahoo Finance. Analysts expect Robinhood to disclose earnings of $0.54 a share on revenue of $1.2 billion when the retail brokerage releases third-quarter earnings after the market closes on Nov. 5.
Compass Point maintained a “buy” rating on the stock in its latest HOOD note, noting a price target of $161, up from $105. Reaching this mark would break the previous record of $153 set earlier this month and set a new all-time high for Robinhood.
Robinhood’s prediction market is gaining traction in the US, but the company is also in talks with UK regulators about bringing it to new markets. bloomberg It was reported last month.
A landmark moment in US prediction markets occurred last year when Polymarket and Carsi processed billions of dollars in bets on whether President Donald Trump would be re-elected. Some said the show solidified its usefulness as an alternative to political polls.
Following Kalsi’s election, Robinhood offered access to its prediction market in the remaining weeks of the presidential election. legal victory To the Commodity Futures Trading Commission.
Regulators have been trying for years to block Kalsi from offering contracts related to the U.S. presidential election in court, but those efforts have failed. After the CFTC rebelled against a federal judge’s ruling, abandoned effort An appeal against the decision is planned in May.
In some ways, the barriers between financial services companies and sports betting companies are merging. Last week, for example, DraftKings threw its name into the prediction market ring. Prediction Market Exchange Railbird.
(Disclosure: decryptionDastan, the parent company of, is the owner of the prediction market Myriad. )
