Robinhood Soars Following Announcement to Expand Prediction Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 26 2025
0mins
Should l Buy HOOD?
Source: Benzinga
Robinhood's New Venture: Robinhood Markets, Inc. is launching a futures and derivatives exchange and clearinghouse, enhancing its investment in prediction markets through a joint venture where it will be the controlling partner.
Market Response: Following the announcement, Robinhood's stock (HOOD) rose by 8.55%, with analysts optimistic about the potential for improved liquidity and monetization of prediction markets.
Analyst Insights: Goldman Sachs analyst James Yaro maintained a Buy rating on HOOD, highlighting that the joint venture could significantly enhance Robinhood's market control and liquidity options.
Risks and Considerations: Yaro noted potential risks, including reduced retail engagement and lower interest rates impacting Robinhood's revenue, while also mentioning manageable investment needs due to existing licenses and products.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 79.450
Low
130.00
Averages
156.24
High
181.00
Current: 79.450
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ETF Underperformance: The Financial Select Sector SPDR ETF (XLF), which tracks the sector, is down 2.3% on the day and 6.38% year-to-date, reflecting a lack of investor confidence in financial stocks.
- Year-to-Date Performance: Apollo Global Management is down 27.22% year-to-date, while KKR has lost 31.73%, with both stocks making up approximately 1.5% of XLF's underlying holdings, highlighting their negative impact on ETF performance.
- Technology & Communications Sector: The technology and communications sector is also underperforming, down 0.6%, with Teradyne and Robinhood showing losses of 5.7% and 5.2%, respectively, indicating cautious sentiment towards tech stocks.
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- Industry Trend Implications: Dorsey anticipates that within the next year, most companies will face similar structural changes, indicating a widespread trend in corporate transformation towards AI applications, which could lead to broader adjustments in the job market.
- Divergent Economist Views: While layoffs raise concerns about the employment landscape, economists argue that these are primarily company-specific adjustments rather than signals for the overall economy, emphasizing that the current unemployment rate remains healthy at 4.3%.
- Far-reaching AI Impact: As companies reconsider resource allocation, the widespread adoption of AI technology may disrupt jobs across various sectors, with tech jobs accounting for only 5% to 7% of the total workforce, yet increasing investments in capital spending could reshape future employment dynamics.
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- Membership Growth Outlook: SoFi anticipates total membership to grow at least 30% year-over-year by 2026, projecting adjusted net revenue of approximately $4.655 billion, reflecting confidence in future growth and strategic market expansion.
- Technical Analysis Indicates Downtrend: SoFi's stock is currently trading 13.1% below its 20-day SMA and 32.5% below its 100-day SMA, indicating a clear bearish trend in both the short and medium term, warranting caution from investors.
- Analyst Rating Changes: Despite a 25.55% increase in stock price over the past 12 months, SoFi remains below its 52-week high of $32.73, with an average price target of $24.72, indicating mixed market sentiment regarding its future performance.
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See More
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- Holding Overview: In the latest 13F filings as of December 31, 2025, six hedge funds held shares of Robinhood (HOOD), indicating ongoing interest in the stock, although changes in holdings may reflect varying market sentiments.
- Position Changes: Among these funds, one increased its position, two decreased their holdings, and two initiated new positions, suggesting a divergence in market views on HOOD that could impact future stock price volatility.
- Aggregate Holdings Statistics: The total shares held by funds increased from 569,866,704 to 570,446,691, representing a 0.10% increase, indicating a slight bullish trend that may reflect cautious optimism about the stock's future performance.
- Key Fund Movements: Revere Asset Management Inc exited its position in HOOD during this period, signaling a potential decrease in confidence from some institutions, which could influence the overall market perception of Robinhood.
See More
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- Market Reaction: Bank, brokerage, and wealth management stocks experienced a decline on Friday.
- Investor Concerns: Investors are worried about the potential disruptions caused by artificial intelligence.
- Inflation Fears: There are growing concerns regarding the implications of resurgent inflation.
- Overall Sentiment: The combination of these factors has led to a negative sentiment in the financial sector.
See More
