As Robinhood Moves Into Sports Betting, Should You Buy, Sell, or Hold HOOD Stock?

Core Viewpoint - Robinhood is aggressively expanding into prediction markets, particularly with features related to the NFL, which is expected to drive user engagement and revenue growth [1][4][5]. Company Overview - Founded in 2013, Robinhood has become a significant player in the fintech space, offering commission-free trading across various asset classes through a user-friendly mobile app [3]. - The company targets younger, first-time investors, aiming to make financial markets more accessible [2]. Recent Developments - Robinhood's recent partnership with Kalshi and plans to launch a futures and derivatives exchange with Susquehanna International highlight its commitment to expanding its prediction market offerings [6]. - The introduction of new NFL-focused prediction-market features allows users to trade on multiple outcomes, enhancing user interaction with live events [4][15]. Financial Performance - In Q3 2025, Robinhood reported a 100% year-over-year increase in total net revenues to $1.27 billion, surpassing expectations [9]. - Transaction-based revenues surged 129% year-over-year to $730 million, with crypto trading revenues increasing over 300% to $268 million [10]. - Adjusted EBITDA rose 177% year-over-year to $742 million, and EPS increased 259% year-over-year to $0.61, exceeding consensus estimates [11]. User Growth - The user base expanded significantly, with funded customers increasing 10% year-over-year to 26.8 million and investment accounts growing 11% to 27.9 million [12]. - Total platform assets skyrocketed 119% year-over-year to $333 billion, driven by net deposits and higher asset valuations [12]. Market Sentiment - Wall Street analysts maintain a broadly optimistic outlook on Robinhood, with a consensus "Moderate Buy" rating and an average price target of $155.37, indicating a potential upside of approximately 31.7% [18][19].