Ethereum co-founder Vitalik Buterin has argued that hedging on prediction markets could provide the same kind of price stability as stablecoins, potentially rendering fiat currency unnecessary. In a long tweet, Buterin offered his views on how to make prediction markets more useful, with the Russian-Canadian programmer arguing that, while achieving a “high level” of success, they are currently producing an increasing quantity of “corposlop.” He wrote, “[Prediction markets] seem to be over-converging to a ...

Core Viewpoint - Sam Bankman-Fried (SBF) criticizes President Joe Biden's regulatory policies, claiming they hinder U.S. companies and contrasts them with President Donald Trump's approach, which he argues encourages business operations in America [1][2]. Group 1: Regulatory Environment - SBF accuses the Biden administration of imposing "insane regulation" that requires licenses but fails to issue them, making it difficult for companies to operate legally in the U.S. [2] - He claims that the Department of Justice (DOJ) under Biden has indicted entire industries, pushing prediction markets and crypto firms offshore, a situation he argues has improved under Trump [3]. Group 2: Economic Impact - SBF credits Trump's expanded business tax breaks for attracting investment back to the U.S. [4]. - He criticizes Democratic tax policies for increasing corporate taxes and creating loopholes that keep money offshore [3]. Group 3: Legal Proceedings - SBF's new trial motion challenges his fraud conviction, asserting that FTX was never insolvent but faced a temporary liquidity crisis due to a run on the exchange [5]. - The motion alleges that the DOJ engaged in witness intimidation, which, if proven, could undermine the prosecution's argument regarding the flow of funds [6]. Group 4: Market Implications - The reframing of the $8 billion loss from a permanent fraud to a temporary cash-flow issue could change market perceptions and create uncertainty for the crypto industry [7]. - SBF's endorsement of Trump contradicts his conviction narrative, as he praises the administration while serving a 25-year sentence for fraud [8].

Core Viewpoint - Robinhood Markets has experienced a significant decline in share price, losing over a third of its value in 2026 due to Q4 revenue falling short of expectations [1] Financial Performance - Q4 revenue increased by 27% to $1.28 billion, but was below the $1.35 billion analyst estimate [2] - Transaction revenue rose by 15% to $776 million, with options revenue soaring 41% to $314 million and equity revenue climbing 54% to $94 million [3] - Cryptocurrency revenue fell sharply by 38% to $221 million, while net interest revenue jumped 39% to $411 million [3] - Total platform assets surged 68% to $324 billion [3] Growth Prospects - The company aims for at least 20% net deposit growth in 2026 and targets $1 trillion in assets in the coming years [4] - Robinhood has launched a banking product with over $400 million in assets and 25,000 funded customers, offering 3.5% interest on deposits [5] - The predictions market is also a focus, with volumes doubling in Q4, reaching a $300 million annual run rate [6] Investment Consideration - Despite challenges in cryptocurrency revenue, the stock is considered attractively valued with a forward P/E ratio of about 29 times based on 2026 estimates, suggesting a potential buying opportunity [8][9]

Core Viewpoint - DraftKings Inc is set to report its fourth-quarter results, which may highlight both the potential and challenges of prediction markets in the sports betting industry [1] DraftKings Q4 Earnings Estimates - Analysts project DraftKings' Q4 revenue to reach $1.99 billion, an increase from $1.39 billion in Q4 2024 [2] - Expected earnings per share for Q4 are 38 cents, up from 14 cents per share in the same quarter last year [2] - The company has missed revenue estimates in six of the last ten quarters, including Q3, but has beaten earnings estimates in nine of the last ten quarters [2] Analyst Ratings and Price Targets - Bank of America views DraftKings favorably compared to competitors, particularly due to a lower betting handle on the Seattle Seahawks [3] - Recent analyst ratings include: - Canaccord Genuity: Buy rating, price target lowered from $54 to $50 - Stifel: Buy rating, price target lowered from $46 to $44 - Guggenheim: Buy rating, price target lowered from $45 to $42 - Morgan Stanley: Overweight rating, price target raised from $50 to $53 [8] Key Items to Watch in DraftKings Q4 Results - The focus during the conference call will likely be on prediction markets, as DraftKings is among several firms entering this space [4] - The results will be analyzed in the context of the recent Super Bowl, with insights expected on betting handle and new customer acquisition [5] - The company may discuss its DraftKings Prediction platform and a partnership with Crypto.com to enhance consumer offerings [6] Stock Price Action - DraftKings stock has decreased by 3.4% to $26.21, with a year-to-date decline of 26.5% and a 39.6% drop over the last 52 weeks [10]

Core Viewpoint - DraftKings Inc is set to report its fourth-quarter results, which may highlight both the potential and challenges of prediction markets in the sports betting industry [1] DraftKings Q4 Earnings Estimates - Analysts project DraftKings' Q4 revenue to reach $1.99 billion, an increase from $1.39 billion in Q4 2024 [2] - Expected earnings per share for Q4 are 38 cents, up from 14 cents per share in the same quarter last year [2] - The company has missed revenue estimates in six of the last ten quarters, including Q3, but has beaten earnings estimates in nine of the last ten quarters [2] Analyst Ratings and Price Targets - Bank of America views DraftKings favorably compared to competitors, particularly due to a lower betting handle on the Seattle Seahawks [3] - Recent analyst ratings include: - Canaccord Genuity: Maintained Buy rating, lowered price target from $54 to $50 [8] - Stifel: Maintained Buy rating, lowered price target from $46 to $44 [8] - Guggenheim: Maintained Buy rating, lowered price target from $45 to $42 [8] - Morgan Stanley: Maintained Overweight rating, raised price target from $50 to $53 [8] Key Items to Watch in DraftKings Q4 Results - The focus during the conference call will likely be on prediction markets, as DraftKings is among several firms entering this space [4] - The results will be analyzed in the context of the recent Super Bowl LX, although its outcomes will not directly impact this quarter [5] - Investors will be interested in insights regarding betting handle, customer acquisition, and the performance of the DraftKings Prediction platform [6][9] DraftKings Stock Price Action - DraftKings stock has decreased by 3.4% to $26.21, with a year-to-date decline of 26.5% and a 39.6% drop over the past 52 weeks [10]

Robinhood (HOOD) shares crashed more than 10% on Feb. 11, after the fintech firm came in short of revenue estimates in its fourth financial quarter of 2025. As the stock crumbled under the weight of a downbeat earnings release, its relative strength index (14-day) slipped into the deeply oversold territory — a technical setup that often precedes a rebound. More News from Barchart Following the post-earnings plunge, Robinhood stock is down about 50% versus its October high. www.barchart.com Bernstein ...

Core Viewpoint - Robinhood Markets Inc. is a significant player in the financial services industry, known for its commission-free trading platform, which has gained popularity among retail investors, particularly younger demographics [1]. Group 1: Stock Performance - Bernstein has reiterated an "Outperform" rating for Robinhood, with the stock currently priced at $74.72, reflecting a decrease of 12.71% from its previous value of $85.60 [2][6]. - The stock has fluctuated between a low of $74.68 and a high of $79.90 on the current day, with a market capitalization of approximately $67.19 billion and a trading volume of 23.54 million shares [5]. Group 2: Business Developments - CEO Vlad Tenev expressed optimism regarding the company's prediction markets business, noting that NBA contracts have surpassed NFL contracts in trading activity, indicating strong user engagement [3][6]. - Upcoming major events such as the Winter Olympics, FIFA World Cup, and March Madness are expected to further boost trading activity on the platform [3]. - Robinhood is experiencing significant volume in non-sports contracts, including a notable government shutdown contract, as part of its strategy to diversify offerings and enhance customer experience [4][6].

Core Insights - The gaming sector is experiencing a mixed performance, with MGM reporting a solid quarter despite a challenging 2025, while expectations for Wynn and DraftKings are cautiously optimistic as they prepare for upcoming earnings reports [1][2][3]. MGM Insights - MGM faced a difficult 2025 with high single-digit declines in visitation and gross gaming revenue, but anticipates a better performance in 2026, particularly in the latter half of the year [2][3]. - Growth in Macau and the digital business is highlighted as a positive aspect of MGM's diversified operations, despite the stock underperforming in 2025 [3][4]. Wynn Insights - Wynn is positioned as a luxury play within the gaming sector, expected to perform better than mid-tier operators, with positive outlooks for both its Vegas operations and the recovering Macau market [5][6]. - The stock is trading at approximately 20 times earnings, with significant luxury assets and plans to open a property in the UAE by late 2026 [7]. DraftKings Insights - DraftKings is expected to exceed Q4 expectations, driven by a strong December performance, although guidance for 2026 may be slightly below expectations due to investments in prediction markets [9][10]. - The company is rolling out a prediction product in markets where sports betting is not available, and initial tracking indicates positive reception [11]. Market Trends - The luxury segment in the gaming and lodging industry is showing growth, while other segments are declining, reflecting a K-shaped economic recovery [5]. - The Chinese market is seen as a bright spot for gaming companies, particularly with the upcoming Chinese New Year [8].

Robinhood (HOOD) shares slumped 10% in early trading on Wednesday after fourth-quarter revenue missed estimates, with a decline in crypto trading impacting results. The popular trading app reported fourth-quarter earnings per share of $0.66, beating expectations of $0.63. However, revenue came in at $1.28 billion, below the $1.33 billion analysts had forecast. A downturn in crypto trading weighed heavily on results, with crypto revenue dropping 38% year over year to $221 million. Wall Street bank JPMor ...

Core Insights - Wedbush Securities continues to support CME Group's prediction markets, achieving significant clearing volumes during Super Bowl LX weekend [1][2] - The firm cleared tens of millions of prediction market contracts across 350+ products, enhancing client access and engagement [2][3] - Wedbush emphasizes its commitment to technology and infrastructure to facilitate seamless operations across various asset classes and exchanges [3] Company Overview - Wedbush Securities, founded in 1955, is the largest subsidiary of Wedbush Financial Services, providing a range of financial services including brokerage, clearing, and investment banking [4] - The firm is headquartered in Pasadena, California, with nearly 900 employees and focuses on client service, financial safety, and innovation [4]