Robinhood Surges as Wall Street Turns Bullish on Prediction Market

Robinhood Markets' stock surged nearly 17% on Thursday, making it one of the strongest performers in the S&P 500. The rally was driven by growing optimism around the fintech platform's prediction-market business.

Deutsche Bank highlighted prediction markets as an important growth opportunity for Robinhood, particularly as financial and event-based contracts gain wider acceptance among investors.

Several Wall Street analysts have turned bullish on Robinhood in recent days. Scotiabank initiated coverage with an Outperform rating and a $136 price target, while Piper Sandler raised its price target to $145 from $135 and maintained an Overweight rating.

Morgan Stanley upgraded Robinhood to Overweight from Equal-Weight and raised its price target to $150 from $124. The firm pointed to Robinhood's expanding product portfolio, rising customer assets, and multiple new growth engines beyond its traditional brokerage business.