Robinhood stock jumps 8% as company strikes deal to expand booming prediction markets business

Core Insights - Robinhood's stock increased by 8% following the announcement of an expansion in its prediction markets product line through a partnership with Susquehanna International [1] - The company has traded 9 billion contracts since launching prediction market services last year, with over 1 million users participating [2] - Year-to-date, Robinhood's shares have risen by 215%, making it the second-largest gainer on the S&P 500 [3] Company Developments - Robinhood plans to continue distributing Kalshi products while also supplementing its offerings with more event contracts directly [2] - The company aims to leverage its distribution advantage, as it already accounts for over 50% of Kalshi market volumes, to capture a larger share of market revenue [4] - The active trader base of 14 million users is seen as a perfect fit for prediction markets, potentially generating over $300 million annually from event contracts [5] Strategic Partnerships - The partnership with Susquehanna will provide liquidity, which is crucial for maintaining price stability in trading [6] - Robinhood's introduction of an institutional-grade exchange is expected to enhance consumer choices and allow for faster delivery of contracts and services [6]