STOCKS | Robinhood Surges 15.2% as Deutsche Bank Sees Growth in Prediction Markets

Robinhood shares jumped 15.2% on Thursday, putting the stock on track for its best single-day performance since August 21. According to Sina Finance, Deutsche Bank analyst Brian Bedell said prediction markets could become a new growth opportunity for the brokerage. Bedell said corporate KPI contracts may become the next major growth area for the industry. He added that contracts tied to corporate financial metrics could eventually become the largest category of event contracts. In a note, Bedell wrote that corporate KPI contracts would remain the largest event-contract asset class. Even if the U.S. Supreme Court issues a ruling favorable to nationwide regulation, he expects U.S. corporate KPI contract trading volume to rise from nearly zero now to more than $1 trillion in 2028, exceeding sports-related event contracts. Bedell also said that if Cboe receives approval from the U.S. Securities and Exchange Commission, it would have a first-mover advantage in corporate KPI contracts, and online brokerages are likely to be among the first customer groups. He said Cboe is best positioned in this theme, followed by Robinhood. He added that Robinhood could benefit from customer trading activity and may also launch related products through the Rothera platform.