Published on: March 25, 2026, at 10:42 AM.
Updated on: March 25, 2026, at 10:42 AM.
- Investment firm aims to lead in prediction markets
- Company may expand its prediction platform with broader institutional features
- Analysts indicate potential international growth
Robinhood Markets (NASDAQ: HOOD) aspires to become a frontrunner in prediction markets while broadening its yes/no derivatives platform beyond its current focus on sports.
After discussions with Robinhood’s VP and General Manager of Futures & Prediction Markets, JB Mackenzie, Deutsche Bank analyst Brian Bedell commented on the company’s ambitious plans within prediction markets.
“We observe that HOOD is aspiring to become a key player in prediction markets through multiple dimensions, including retail use (integrated into HOOD’s comprehensive product range), a high-volume, multi-product exchange, advanced market-making abilities, and longer-term institutional capabilities focused on event contracts across various applications, alongside global expansion prospects,” the analyst noted.
He assigned Robinhood shares a “buy” rating with a target price of $121, suggesting a 75% upside from the stock’s closing price on March 24.
Robinhood Eyes Diversification Beyond Sports Contracts
While estimates differ, numerous sources indicate sports event contracts dominate turnover on yes/no exchanges, a trend likely mirrored by Robinhood’s primarily retail client base of active traders and sports bettors.
Diversifying the prediction markets platform beyond sports is essential not only for market variety but also to alleviate scrutiny from politicians and state regulators regarding sports derivatives, which have led to proposed bans on certain event contracts. As Bedell highlights, Robinhood is prioritizing the expansion of its prediction markets beyond the sports realm.
“Even though management is committed to continually improving its sports offerings, they anticipate the market will eventually broaden to encompass investment-oriented contracts related to finance, economics, and macro trends, which we believe will be a significant evolutionary force for the industry,” he reiterated.
Experts also see other areas, such as cryptocurrency valuations, cultural topics, economic predictions, and political events, as crucial for the evolution of prediction markets, significantly reducing reliance on sports contracts.
Robinhood’s Transition Away from Sports Will Require Time
While prediction markets are one of the fastest-growing segments for the company, this growth has predominantly been fueled by sports derivatives, indicating that investors might need to exercise patience as Robinhood navigates attracting traders to yes/no contracts beyond the sports arena. Bedell is optimistic that the company can achieve this goal over time.
“Although the transition to non-sports segments will take time, we maintain a positive outlook on the management’s execution of this product strategy and reiterate our Buy rating, with HOOD as our leading growth selection among online brokers,” concluded the analyst.
Some analysts have previously indicated that as the prediction markets sector in the U.S. matures, it is likely to evolve into a competitive landscape dominated by five major players, including DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood. Bedell did not express an opinion regarding Robinhood’s relationship with Kalshi. In November, Robinhood announced a partnership with Susquehanna International Group, a prominent market maker, suggesting potential for an independent approach in the market.