Truist Securities analysts noted in a report that Robinhood Markets' prediction market business is gaining momentum, with trading volume accelerating over the past week. This puts the metric on track to be nearly 40% higher than analysts' expectations for the second quarter.
The analysts from Truist Securities indicated that the revenue upside for the prediction business could be greater than what a simple application of Wall Street's take rate to the volume increase would suggest, considering the potential for the World Cup to drive significant trading activity.
They stated that these contracts are traded on Robinhood's proprietary Rothera exchange, where the company does not share revenue with third-party exchanges.
Overall, Robinhood is on pace for a record June in trading across stocks, options, and prediction markets, achieving a "hat trick without the help of crypto."
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Robinhood's Prediction Market Business Poised for World Cup Boost
Deep News06-29
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