HOOD Stock Climbs as Robinhood Sees Prediction Market Success with Rothera
Robinhood's (HOOD) stock price surged in pre-market trading after Goldman Sachs raised its price target to $142, citing the early success of the company's prediction market exchange, Rothera. Analyst James Yaro attributed Rothera's success to deep liquidity, low fees, and the ability to scale to more brokers and products.
In its first quarter, Rothera generated approximately $150 million in annualized revenue, making it one of the three biggest prediction market exchanges in the world by volume since its launch in May 2026. Goldman Sachs also sees overall prediction market net revenue rising to $943 million in 2027 and $1.15 billion in 2028.
Rothiba also added Crypto.com's OG event contracts to its app, taking minority stakes in the exchange and its prediction markets business, according to the Wall Street Journal. The company's shares have been up over 2% in pre-market trade, with Goldman Sachs' price target of $142 implying an upside of 16% from HOOD stock's Friday close of $122.