Investment firm Piper Sandler has reported that Robinhood’s push into prediction markets is paying off, with sports betting and event contracts already generating about US$200 million for the trading platform.
Piper Sandler reiterated its rating on Robinhood and boosted its price target to US$140 from US$120, suggesting a 12% upside.
In a note to clients, Piper Sandler analyst Patrick Moley said that the prediction market sector was a big opportunity for Robinhood.
A key driver is Robinhood’s partnership with Kalshi, a federally regulated event-contracts exchange. Kalshi has seen record trading in September, thanks to demand for NFL and NCAA wagers. Under the agreement, Robinhood and Kalshi split revenue evenly, with each contract carrying a US$0.02 fee.
