Robinhood's Latest Prediction Markets Move Has Its Stock Flying

Core Insights - Robinhood is expanding its prediction markets business by launching a new futures and derivatives exchange in partnership with Susquehanna International Group, which has led to a 10% increase in its stock price, making it one of the top gainers in the S&P 500 [2][7]. Group 1: Business Expansion - The new exchange aims to enhance Robinhood's offerings in prediction markets, which have seen significant growth, with the company doubling its volume every quarter since launch, reaching 2.3 billion contracts in the third quarter [9]. - Robinhood has acquired a 90% stake in MIAXdx, a CFTC-licensed derivatives clearing house, with the deal expected to close in the first quarter of next year [5]. Group 2: Market Positioning - Robinhood is positioning itself as a one-stop shop for trading in stocks, crypto, and event contracts, as well as banking and mortgage services, aiming to attract larger customers [3][4]. - The company faces competition from other players in the prediction markets space, such as Polymarket, which recently received regulatory approval to resume U.S. operations [4].