Robinhood(US:HOOD) Benzinga·2026-02-11 05:21Core Insights - Robinhood Markets Inc. is optimistic about its prediction markets business, especially with major sporting events scheduled for the year [1][2]. Group 1: Prediction Markets Performance - CEO Vlad Tenev noted that NBA contracts have surpassed NFL contracts in trading activity on the prediction market platform, despite concerns about a potential decline in trading activity after the 2025 football season [2]. - The company anticipates a strong year for sports-related contracts due to events like the Winter Olympics, FIFA World Cup, and March Madness [2]. - Non-sports contracts are also performing well, with significant volume driven by contracts related to government shutdowns [3]. Group 2: Financial Performance - Robinhood reported a record fourth-quarter revenue of $1.28 billion, although it fell short of the Street estimate of $1.34 billion [4]. - The company achieved fourth-quarter earnings per share of 66 cents, exceeding the Street consensus estimate of 62 cents per share [4]. - In 2025, over 12 billion prediction market contracts were traded, with a record 8.5 billion contracts in the fourth quarter [4]. Group 3: Market Reaction - Following the earnings report, Robinhood shares fell by 7.66% in after-hours trading after a regular session decline of 1.11%, closing at $85.60 [5]. - Benzinga's Edge Stock Rankings indicate that Robinhood has weaker price momentum across short, medium, and long-term trends, despite a strong Growth score [6].