Robinhood New Prediction Market Could Add $260M to Annual Revenue
March 18 - Robinhood Markets, Inc. (HOOD, Financial) unveiled a broad prediction market hub. The new platform enables users to trade event contracts on outcomes ranging from the Consumer Price Index to major economic signals.
Warning! GuruFocus has detected 6 Warning Signs with HOOD.
Analysts at Morgan Stanley estimate that this debut could drive an annual revenue run-rate of around $260 million, potentially adding about 20 cents to earnings per share or boosting 2025 EPS by roughly 14% at 80% incremental margins. This figure represents nearly 26% of Robinhood's Q4 2024 revenue of $1.01 billion.
Previously, Robinhood offered event contracts for the 2024 presidential election in November. That initiative proved popular, with more than 500 million contracts traded in just a week, noted analyst Michael Cyprys. He emphasized that the strong customer response gives Robinhood conviction in its prediction market product.
The company plans to expand its offering in the coming weeks and months, marking a significant milestone for both Robinhood and the broader prediction market industry.
This article first appeared on GuruFocus.
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