Latest news with #JBMackenzie
Yahoo
10 hours ago
- Business
- Yahoo
HOOD Bets on Football Prediction Markets: Can it Score Long-Term Gains?
Robinhood Markets HOOD has taken another step in its diversification strategy, announcing the launch of pro and college football prediction markets. This expansion introduces trading on all NFL regular-season games and matchups from the Power Four conferences and select traditional sportsbooks that rely on fixed odds, Robinhood's offering allows users to trade event contracts, buying and selling positions on game outcomes with prices determined by market interaction. This market-based structure, powered by a partnership with Kalshi, a Commodity Futures Trading Commission-regulated exchange, enables HOOD to operate in a federally regulated environment, sidestepping restrictive state betting debuting its prediction markets in 2024, Robinhood has facilitated more than 2 billion contracts, signaling strong engagement. Per JB Mackenzie, VP of Futures and International at HOOD, football was a natural next step given its contracts are part of Robinhood's broader vision to become a one-stop platform for investing and trading. While the opportunity is compelling, regulatory scrutiny of event contracts remains a risk and adoption rates are untested in sports markets. If adoption scales, sports prediction markets could open a new growth avenue for the company, strengthen brand stickiness and support further monetization beyond traditional brokerage services. How Robinhood's Peers are Expanding Product Suite Similar to HOOD, Interactive Brokers IBKR is expanding its prediction markets business. Earlier this month, the company, which launched Forecast Contracts in August 2024 for eligible clients in the United States and Hong Kong, expanded it into Europe. Thus, this gives investors across the globe more ways to act on their views and manage risk through its comprehensive from this, Interactive Brokers has continuously been making efforts to expand the product suite and reach of its services. The company expanded with new crypto offerings, GlobalTrader, Overnight Trading, IBKR Lite, Impact Dashboard and IBKR Desktop, reinforcing its innovation focus and broadening global client access across asset CEO Billy Hult, Tradeweb TW continues pushing the "electronification" of bond markets, having expanded beyond government bonds into mortgages, interest-rate swaps, ETFs and emerging markets, plus a new frontier in private credit. Tradeweb is also investing in blockchain and distributed ledger technology to improve settlement and collateral management. AI is another strategic focus, with machine learning tools enhancing trade execution and dealer-client matching. Robinhood's Price Performance, Valuation & Estimate Analysis Investors are bullish on HOOD stock, which has surged 188.5% this year. In comparison, the industry has rallied 21.5%. Further, Interactive Brokers has gained 41.3%, while Tradeweb shares have declined 2.2% in the same time frame. YTD Price Performance Image Source: Zacks Investment Research Given the impressive price performance, HOOD shares are currently trading at a massive premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 13.03X compared with the industry average of 2.85X. P/TB TTM Image Source: Zacks Investment Research The Zacks Consensus Estimate for Robinhood's 2025 and 2026 earnings implies year-over-year growth of 42.2% and 20.8%, respectively. In the past week, earnings estimates for 2025 and 2026 have been marginally revised upward. Earnings Estimates Image Source: Zacks Investment Research HOOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Gizmodo
a day ago
- Business
- Gizmodo
Robinhood Tries to Rebrand Sports Betting as Investing
Robinhood has gotten a reputation as a platform where people make wildly speculative investments without sufficient guardrails. So it's only right that it's getting into the sports betting business. The company announced on Tuesday that it is launching 'prediction markets' for college and professional football as part of a partnership with Kalshi. According to the company, it'll start listing 'contracts' for NFL and NCAA games in the coming days, with plans to make each matchup open for two weeks prior to their kickoff. 'Football is far and away the most popular sport in America,' JB Mackenzie, Vice President and General Manager of Futures and International at Robinhood, said in a statement. 'Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs.' It's a little funny and a lot sad that Robinhood is positioning the ability to put your money down on the outcome of football games as 'investing.' But it's certainly honest, albeit probably unintentionally so. The reality is that Robinhood wants you moving your money around because that is how it makes money, getting compensated for every transaction that it routes to market makers. That is why the app gamifies the experience, using dark pattern techniques to keep you betting that you can beat the market. By adding sports betting to the mix, it's making clear that it's as much a casino as a stockbroker. Robinhood would disagree with that framing. In the press release announcing its football markets, the company specifically differentiates sports betting from its offerings. 'Unlike sports betting, where the firm sets a line, event contracts leverage the power and rigor of financial market structure and are offered in a marketplace where buyers and sellers interact to set the price,' it argued. 'Customers can access the contracts in real time and manage risk by adjusting–or exiting–their positions up to and throughout a game before a contract expires.' Lots of states disagree, for what that is worth. At least seven states have sent cease and desist orders to Kalshi, telling the company to stop offering its prediction markets to their respective residents. Those states argue there is 'no meaningful difference' between sports trading and sports betting, which seems kinda hard to argue. Sports 'trading' is still effectively betting on the outcome of a game, just with shifting markets. Kalshi, of course, thinks the difference is meaningful and has largely continued to operate unabated. It'll probably win any challenge to its legality should it reach the federal level, given that the company handed a strategic advisor seat to Donald Trump, Jr., earlier this year. If you're the gambling kind, it's probably a safe bet that Kalshi can pull some strings.
Miami Herald
a day ago
- Business
- Miami Herald
Robinhood app now comes with NFL, college football predictions
Aug. 19 (UPI) -- Financial marketplace Robinhood said Tuesday its newly launched predictive market in its app will allow customers to trade on a series of different professional and college football outcomes. Robinhood Derivatives LLC said that, within the Robinhood app via the Prediction Markets Hub, its U.S.-based customers now can trade on outcomes of the most popular pro and college football games, which includes all regular-season matchups and college Power 4 schools and independents, according to company officials. "Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs," JB Mackenzie, Robinhood's VP & GM of Futures and International, said in a statement. Mackenzie described American football as "the most popular sport" in the nation. Robinhood officials said pro and college football prediction markets are "rolling out now" and will be available to eligible customers in the next few days. Robinhood Derivatives is a separate but wholly-owned entity of Robinhood Markets. According to Robinhood, its customers can access contracts in real time and manage risk "by adjusting -- or exiting -- their positions up to and throughout a game before a contract expires." In February, the U.S. Securities and Exchange Commission ended its investigation into Robinhood Crypto, saying it will not pursue further action with company officials adamant it never should have been opened to start. A report the same month indicated that millions of Americans sought help for gambling addiction in the wake of the U.S. Supreme Court's 2018 ruling that allowed states to legalize sports betting. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
a day ago
- Business
- UPI
Robinhood app now comes with NFL, college football predictions
Robinhood said Tuesday that its U.S.-based customers now can trade on outcomes of the most popular pro and college football games. In February, a report indicated millions of Americans sought help for gambling addiction in the wake of the U.S. Supreme Court's 2018 ruling to allow states to legalize online sports betting. File (2024) Photo by John Angelillo/UPI | License Photo Aug. 19 (UPI) -- Financial marketplace Robinhood said Tuesday its newly launched predictive market in its app will allow customers to trade on a series of different professional and college football outcomes. Robinhood Derivatives LLC said that, within the Robinhood app via the Prediction Markets Hub, its U.S.-based customers now can trade on outcomes of the most popular pro and college football games, which includes all regular-season matchups and college Power 4 schools and independents, according to company officials. "Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs," JB Mackenzie, Robinhood's VP & GM of Futures and International, said in a statement. Mackenzie described American football as "the most popular sport" in the nation. Robinhood officials said pro and college football prediction markets are "rolling out now" and will be available to eligible customers in the next few days. Robinhood Derivatives is a separate but wholly-owned entity of Robinhood Markets. According to Robinhood, its customers can access contracts in real time and manage risk "by adjusting -- or exiting -- their positions up to and throughout a game before a contract expires." In February, the U.S. Securities and Exchange Commission ended its investigation into Robinhood Crypto, saying it will not pursue further action with company officials adamant it never should have been opened to start. A report the same month indicated that millions of Americans sought help for gambling addiction in the wake of the U.S. Supreme Court's 2018 ruling that allowed states to legalize sports betting.
CNBC
a day ago
- Business
- CNBC
Robinhood launches NFL and college football prediction markets
Robinhood announced Tuesday that the online broker is launching new prediction markets for professional and college-level football. Customers will now be able to trade on the outcomes of "the most popular" NFL and college football games on the Robinhood app. Robinhood said those games would include regular season pro matchups and all college Power Four schools games. The prediction markets are currently rolling out, according to Robinhood, and will be available to customers "in the coming days," with plans to launch the first two weeks of the regular football seasons and eventually add weekly matchups. "Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs," Robinhood Vice President of Futures and International JB Mackenzie said in a statement. The new move comes as Robinhood is aggressively expanding its prediction markets and wades deeper into the sports wagering arena. On its second-quarter earnings call last month, CFO Jason Warnick said the company is seeing its strongest engagement in sports wagers, with CEO Vlad Tenev adding that the company sees "a big opportunity" in sports betting. The broker added that the football prediction markets will differ from sports betting, allowing buyers and sellers to engage with each other to set the price. Robinhood said it expects the football prediction markets to be tradeable everyday between 8 a.m. ET and 3 a.m. ET. Since first unveiling its prediction markets at the end of of last year, Robinhood said it's seen more than 2 billion contracts traded. The stock is up more than 400% over the one-year period.
