Core Insights - Robinhood's prediction market platform has rapidly become its fastest-growing product line, generating $100 million in revenue in Q3, accounting for approximately 8% of total revenue of $1.27 billion [1][2] - The company reported a record revenue increase of 100% year-over-year, with net income rising 271% to $556 million and earnings per share increasing 259% to 61 cents [2] - Robinhood's stock has surged 225% year-to-date, outperforming competitors like Nvidia, which has a three-year annualized return of about 119% [3] Revenue and Growth - The prediction market has seen significant trading activity, with 3 billion event contracts traded in November, marking a 20% increase from October [2] - The prediction market has traded 11 billion contracts by over 1 million customers since its launch, indicating strong customer demand for more contracts and advanced trading tools [5] Product Development - Robinhood is expanding its offerings in sports predictions, introducing player contracts for individual pro football player performances and plans to extend this to other sports [6] - The company has launched parlay-like preset combos for trading outcomes in individual pro football games, with plans for custom combos to be introduced early next year [7] Market Position and Future Outlook - Analysts from Deutsche Bank predict that U.S. prediction markets could reach at least 1 trillion contracts by 2027 and over 5 trillion by 2029, positioning Robinhood at the forefront of this emerging supercycle [9] - Truist has initiated coverage of Robinhood with a buy rating and a price target of $155, suggesting a potential growth of 28% as the market expands with new product launches [10][11]