Industry Overview - The brokerage industry has shown strong momentum in 2025, driven by technological advancements and increased market participation, with significant investments in digital trading platforms and AI-enhanced services improving client experience and market accessibility [1][2] - Commission-free trading models and a rise in new account openings have contributed to higher trading volumes, creating additional revenue opportunities through alternative income streams [2][6] - Brokerage stocks have outperformed broader markets in 2025, with notable gains for companies like Robinhood, Interactive Brokers, and Charles Schwab, all exceeding the S&P 500 Index's growth [4][6] Robinhood (HOOD) - Robinhood has transitioned from a commission-free trading app to a diversified platform, achieving a compound annual growth rate (CAGR) of 36.7% in transaction-based revenues over the last five years, driven by options and equities trading [10][11] - The company has engaged in strategic acquisitions to expand its product offerings, including a 90% stake in MIAX Derivatives Exchange and the acquisition of Bitstamp to enhance its crypto business [12][14] - The Zacks Consensus Estimate for Robinhood's 2026 revenues is $5.40 billion, reflecting a year-over-year rise of 21%, with an earnings estimate of $2.31 per share indicating growth of 17.9% [16] Interactive Brokers (IBKR) - Interactive Brokers has maintained a low level of compensation expenses relative to net revenues, achieving a CAGR of 21.8% in total net revenues over the last five years [18] - The company has diversified its product offerings, recently allowing retail investors to fund accounts using stablecoins and expanding access to emerging markets [19][20] - The Zacks Consensus Estimate for IBKR's 2026 revenues is $6.27 billion, indicating a year-over-year rise of 5.7%, with an earnings estimate of $2.23 suggesting growth of 8.1% [22] Charles Schwab (SCHW) - Schwab has focused on increasing its client base in advisory solutions, with total managed investing solutions revenues growing at a CAGR of 12.2% over the last five years [26] - The company has seen a significant increase in total client assets, with a five-year CAGR of 20.1%, and plans to open new branches to enhance client engagement [27] - The Zacks Consensus Estimate for Schwab's 2026 revenues is $25.89 billion, indicating a year-over-year rise of 8.8%, with an earnings estimate of $5.58 suggesting growth of 16% [29]

Prediction Markets & AI Integration - Robinhood is heavily focusing on prediction markets [1] - Robinhood Cortex (AI Finance InfoAgent) will provide real-time insights into holdings and answer user questions [1] - Robinhood Cortex aims to educate users of all levels on finance [1] Sports Prediction Features - Robinhood will offer prediction markets across many categories, including sports and politics [1] - Player combos, Team Combos, and player props (parlays) will be available [1] - A full "Live Sports Hub" will be available on desktop and mobile [1] - A weekly newsletter focused on Sports Predictions will be launched [1] Rollout Timeline - Robinhood Cortex is scheduled to roll out to Robinhood Gold members in Q1 2026 [1]

Core Insights - Robinhood (HOOD) is expected to benefit more from prediction markets compared to Coinbase (COIN) as users are more likely to use fresh cash for trading rather than selling existing holdings [1][2] - Mizuho raised revenue forecasts for Robinhood while cutting the price target for Coinbase due to concerns about prediction-market activity potentially cannibalizing crypto trading [2] User Behavior and Market Trends - Users of Robinhood and Coinbase are significantly more likely to engage in prediction markets, with a focus on economic (81%) and political events (49%), followed by sports (47%) [3] - Approximately 50% of Robinhood users plan to fund prediction market trades with new money, while only 12% and 10% intend to sell traditional portfolios or crypto [4] - In contrast, Coinbase users are split evenly between selling crypto (37%) and adding new money (37%) as funding sources, raising concerns about the impact on existing crypto trading revenue [5] Financial Projections - Robinhood's prediction-market business is projected to reach a $300 million run rate in Q4, leading Mizuho to increase its 2026-2027 revenue estimates for the company by 6%-7% [6] - Mizuho maintained an outperform rating for Robinhood with a price target of $172, while cutting Coinbase's price target from $320 to $280 due to weaker-than-expected trends and lower Bitcoin prices [7]

Core Viewpoint - Robinhood Markets, Inc. (HOOD) shows potential for significant upside, with a mean price target of $155.39 indicating a 30.1% increase from the current price of $119.4 [1] Price Targets and Analyst Consensus - The average price target consists of 18 estimates ranging from a low of $92.00 to a high of $180.00, with a standard deviation of $20.03, indicating variability in analyst predictions [2] - The lowest estimate suggests a 23% decline, while the highest indicates a 50.8% upside, highlighting the range of opinions among analysts [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement direction, which can be a useful starting point for further research [9] Earnings Estimates and Analyst Optimism - Analysts exhibit growing optimism about HOOD's earnings prospects, as indicated by a consensus of higher EPS estimates, which correlates with potential stock price increases [11] - Over the past 30 days, two earnings estimates have been revised upward, leading to a 0.9% increase in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - HOOD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for near-term upside [13] - While consensus price targets may not be entirely reliable, the implied direction of price movement appears to be a valid guide for investors [14]

Core Insights - The company has significantly expanded its prediction markets offering, moving from one market a year ago to thousands, catering to both traders and information seekers [1] - The prediction market is believed to be in the early stages of a super cycle, with expected tremendous growth in trading volumes and usage as a new source of information [2] - The prediction market on Robin Hood provides insights into potential outcomes of events, such as mergers, with real-time updates on probabilities [3][4] Company Developments - The CEO highlighted the increased probability of Paramount acquiring Warner Brothers, which rose from 55% to 75% within 24 hours, showcasing the dynamic nature of prediction markets [4] - The company aims to position prediction markets as superior forecasting tools, allowing users to bypass complex modeling and obtain direct answers to specific events [5] Industry Trends - Prediction markets are gaining traction as a valuable source of information, appearing in sell-side analyst reports and attracting interest from various stakeholders [6] - The ability to provide real-time, exchange-traded prices and forecasts on a wide range of topics allows traders to specialize in areas where they have unique expertise [7] - Customers are increasingly using scientific methods to analyze prediction market data, enabling them to challenge conventional wisdom and leverage their unique insights for trading [8]

🔥 Most Influential: @vladtenevRobinhood has acquired Bitstamp, launched staking services for ether and solana, and added new tokens for US users, including XRP, SOL, and BNB.@FranciscoMemor writes:https://t.co/aryav2CvMP ...

“I cAnT gEt eXpOsUrE tO pReDiCTioN mArKetS, sO wHy sHouLd I CaRe”Now you literally can.A publicly traded company is going heavy on them.If you believe they have upsideThen the revenue from the will go back toward the equity asset$HOOD is now a direct way to get exposure to prediction market upsideEasy (@EasyEatsBodega):THE FOUNDER OF ROBINHOOD LITERALLY JUST SAID THEY BELIEVE THERE WILL BE A PREDICTION MARKET SUPERCYCLE!HOW MUCH MORE OBVIOUS CAN IT GET!? ...

Robinhood(HOOD.US)涨2.6%，报122.52美元。消息面上，Robinhood宣布，客户可以对单场比赛的赛 果、总分和让球进行交易。到目前为止，已有超过100万名用户交易了约110亿份合约。Robinhood期货 与预测市场高级总监亚当·希克森在接受采访时表示："我们的最终计划是进一步发展，在预测市场领域 的所有类别中实现自定义组合。"(格隆汇) ...

Robinhood is expanding its fast-growing prediction market offering with a new pro football-centered feature.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The trading platform is giving users the ability to trade ...

Core Insights - Robinhood is transforming from a commission-free stock trading platform to a significant player in the crypto industry, focusing on blockchain development and tokenized assets [1][2]. Group 1: Company Developments - Robinhood has completed a $200 million acquisition of Bitstamp, enhancing its capabilities in the crypto space with over 50 global licenses and facilitating institutional trading [2]. - The company has launched staking services for ether and solana, introduced perpetual futures in the EU, and expanded its token offerings for U.S. users, including XRP, SOL, and BNB [3]. - Robinhood is developing its own layer 2 blockchain, named Robinhood Chain, aimed at enabling tokenized asset trading with reduced fees and quicker settlement times [3]. Group 2: Industry Perspective - CEO Vlad Tenev believes in the future of the crypto sector, comparing its growth to an unstoppable freight train and asserting that "tokenization is going to eat the entire financial system" [4]. - As Robinhood enhances its crypto ecosystem presence, it is also expanding its prediction markets offerings [4].