(Reuters) -Robinhood Markets and Susquehanna International Group on Tuesday struck a deal to take over a regulated exchange run by ​Miami International Holdings, giving the companies a major boost in their push ‌to establish a stronghold in prediction markets. The companies are acquiring a 90% stake in LedgerX, ‌which was a part of now-defunct crypto exchange FTX. The platform began operating under the MIAX umbrella after parent company Miami International Holdings acquired LedgerX from the FTX bankruptcy ...

Core Insights - The brokerage co-founded by Vlad Tenev is focusing on making exotic investments accessible to ordinary investors, indicating a shift towards democratizing investment opportunities [1] - The company views aggressive traders as a crucial component of its business strategy, suggesting that attracting this demographic is key to its success [1] Company Strategy - The brokerage aims to provide a platform for ordinary investors to engage in exotic investments, which were traditionally reserved for institutional investors [1] - By targeting aggressive traders, the company is positioning itself to capitalize on the growing trend of retail trading and increased market participation from individual investors [1]

Core Insights - Polymarket has received regulatory clearance from the Commodity Futures Trading Commission (CFTC) to operate in the U.S., marking its return after nearly four years of prohibition [6][8][9] - The return of Polymarket coincides with a significant boom in event betting, with various fintech platforms and sportsbooks vying for market share [2][3] - Analysts predict a potential "gold rush" in the predictions market, with numerous sportsbooks competing for users, despite some facing substantial losses [4] Regulatory Developments - The CFTC had previously ordered Polymarket to cease operations in the U.S. in 2022, resulting in a $1.4 million penalty for operating an unregistered trading venue [6] - Polymarket's founder noted that the regulatory approval process, which typically takes years, was completed in just four months [9] Market Dynamics - The predictions marketplace is expanding, with Polymarket set to power a new prediction markets hub in collaboration with Yahoo Finance, and Google planning to support prediction markets data [5] - There is a current live events contract on Polymarket regarding its potential U.S. operations in 2025, with 71% of bettors currently wagering "yes" [9]

The new exchange will help Robinhood offer additional prediction contracts tied to sports, elections and other future events. ...

Core Insights - Miami International Holdings, Inc. (MIAX) has announced an agreement to sell 90% of MIAX Derivatives Exchange (MIAXdx) to Robinhood Markets, Inc. while retaining a 10% stake [1][3] - The transaction aims to provide MIAX with expedited access to growing prediction markets, aligning with its strategy of partnering with industry leaders [3] Company Overview - MIAX operates as a technology-driven leader in regulated financial markets, managing nine exchanges across various asset classes including options, futures, and equities [4] - MIAXdx is recognized as a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) with regulatory approval from the Commodity Futures Trading Commission (CFTC) [2] Strategic Implications - The partnership with Robinhood is seen as a logical step for MIAX to enhance its offerings in prediction markets, catering to both institutional and retail futures traders [3] - The transaction is expected to close in the first quarter of 2026, pending customary closing conditions and CFTC filings [3]

Core Insights - Over $500 million in insider stock sales have occurred in three high-profile companies, indicating potential concerns among executives about the sustainability of recent stock gains [2] - Robinhood Markets has seen significant insider sales, with over $286 million sold since October 21, primarily by co-founder Baiju Bhatt, raising questions about insider sentiment [3][4] - Stryker Corporation has also experienced notable insider selling, with over $185 million in shares sold since early November, despite its stable market presence and $142 billion valuation [7] Company-Specific Summaries - **Robinhood Markets**: The company has experienced a 208% increase in share price in 2025, reaching a market capitalization of nearly $103 billion. However, insider sales, particularly by Baiju Bhatt, account for around 23% of total insider selling in 2025, suggesting bearish sentiment among insiders [3][4][5] - **Stryker Corporation**: Despite being a major player in healthcare equipment with a valuation of $142 billion, Stryker has delivered only a 3.5% return in 2025. The company has seen significant insider activity, with over $185 million in shares sold, indicating potential concerns among insiders [6][7]

Group 1 - Harmonic, an AI startup co-founded by Robinhood CEO Vlad Tenev, has successfully raised $120 million in new funding [1] - The funding round has resulted in a valuation of $1.45 billion for the company [1] - The company is focused on addressing AI "hallucinations," which are inaccuracies in AI-generated content [1]

Core Insights - The article discusses the author's transition from being an investment advisor to focusing on personal investments while writing on financial topics [1]. Group 1 - The author has experience as an investment advisor and has owned several businesses [1]. - Currently, the author invests solely for personal purposes [1]. - The author continues to write on various financial and economic topics [1].

Core Viewpoint - Robinhood Markets has experienced significant stock growth, but its future valuation depends on continued business growth [1][4]. Company Performance - Robinhood's stock surged nearly 400% in 2024 and has nearly tripled over the past year, despite a recent decline of over 25% [4]. - The company reported a 65% year-over-year revenue increase through the first three quarters of 2025, with Q3 showing over 100% growth [6]. - Earnings have risen by 158% year to date, and free cash flow has increased by 108% [6]. - Robinhood is projected to achieve a net profit of $1.7 billion and free cash flow of $3.4 billion for the year [6]. Market Valuation - Analysts predict Robinhood's earnings will grow at an annualized rate of about 22% over the next five years [7]. - The current valuation of Robinhood's stock is considered expensive at 28 times free cash flow and even more so at a price-to-earnings ratio of 58 [7].

Core Insights - Robinhood's customers are actively trading stocks like Tesla, Nvidia, and Apple, but recent behavior indicates a shift towards trimming positions rather than aggressive buying [3][5][7] - There has been a notable interest in Bitcoin, with it being a net buy recently, reflecting a strong preference for cryptocurrency among Robinhood users [1][2] - The trading activity shows a mix of net buying in stocks like Nvidia, Amazon, and Netflix, while Tesla, Palantir, and Apple have seen net trimming [6][10][11] Trading Behavior - Customers tend to hold core positions in popular stocks and trade around them, indicating a strategy of maintaining long-term investments while taking advantage of short-term market movements [2][4] - Recent market conditions have made customers more cautious, leading to less bold trading compared to previous months, with some engaging in tax loss harvesting as the year-end approaches [11][12] - The trading patterns suggest that while some stocks are actively traded, they may not necessarily be seeing net buying, as evidenced by the trimming of positions in Tesla and Apple [7][8] Customer Preferences - The Robinhood investor index highlights that Nvidia and Tesla are among the most traded stocks, but their trading dynamics differ, with Nvidia seeing net buying and Tesla experiencing net selling [5][6] - The presence of larger-cap stocks in the trading activity indicates a preference for established companies over smaller or emerging ones in the current market environment [9] - Overall, the customer base appears to be savvy, adapting their strategies based on market conditions, but currently exhibiting a more cautious approach [10][11]