Robinhood Stock Surges After Launch Of Prediction Markets Hub: Retail’s Cautiously Optimistic

Shares of Robinhood Markets Inc. (HOOD) surged over 7% on Monday after Robinhood Derivatives, LLC (RHD) announced a prediction markets hub directly within the Robinhood App, providing the opportunity to trade on the outcomes of some of the world’s biggest events.

Robinhood said that at its launch, the hub will permit customers to trade contracts for the upper bound of the target Fed funds rate in May and the upcoming men’s and women’s College Basketball Tournaments.

Robinhood highlighted that the prediction markets hub and corresponding contracts will initially be available across the U.S. through KalshiEX LLC, a CFTC-regulated exchange.

The company said these contracts will start rolling out on Monday and will be available to all eligible customers in the coming days.

Prediction markets recently gained traction following Donald Trump’s victory in the U.S. presidential election. According to a Fortune report, Polymarket and Kalshi platforms drew billions of dollars worth of bets and correctly predicted Trump’s victory.

JB Mackenzie, VP & GM of Futures and International at Robinhood, said the company believes in the power of prediction markets and how they play an essential role at the intersection of news, economics, politics, sports, and culture.

“We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations,” Mackenzie said.

The Fortune report added that customers using the new prediction markets hub will pay a fee of two cents per contract —one penny will go to Kalshi and the other to Robinhood.

Meanwhile, retail sentiment on Stocktwits continued to trend in the ‘neutral’ territory (48/100), albeit with a better score than a day ago.

HOOD’s Sentiment Meter and Message Volume as of 1:48 p.m. ET on March 17, 2025 | Source: Stocktwits

Most user comments on Stocktwits reflected a positive take on the stock.

HOOD shares have gained over 6% in 2025 and have surged over 130% in the past 12 months.

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