Robinhood Markets (HOOD) shares jumped more than 12% Monday after CEO Vladimir Tenev announced strong momentum in prediction markets, an emerging sector where participants wager on elections, sports, and other widely watched events.<\/p>\n\n\n\n
In a post on X, Tenev said Robinhood customers have transacted more than $4 billion worth of event contracts, with $2 billion occurring in the third quarter alone. The surge highlights how prediction markets, once niche, are becoming a mainstream revenue driver for the brokerage.<\/p>\n\n\n\n
The trend gained prominence during the 2024 U.S. presidential election, when platforms like Kalshi and Polymarket saw millions in wagers. Robinhood has seized the opportunity by offering prediction-market trading through a partnership with Kalshi, which is regulated by the U.S. Commodity Futures Trading Commission. In August, Robinhood further expanded into pro and college football contracts.<\/p>\n\n\n\n
The news pushed Robinhood stock to a record high, capping a more than 260% gain year-to-date. The company was also recently added to the S&P 500 Index, reflecting its growing market significance.<\/p>\n\n\n\n
While Robinhood remains best known for stock, options, and cryptocurrency trading, its rapid expansion into prediction markets underscores its push to diversify and capture new avenues of growth.<\/p>\n\n\n\n