Robinhood Markets (NASDAQ:HOOD) new election prediction market is reshaping how people consume information, with CEO Vlad Tenev saying it could redefine how users get real-time news.
What Happened: Robinhood’s prediction market was unveiled a week before the election, spotlighting the race between Democratic nominee Kamala Harris and now President-elect Donald Trump.
The platform’s CEO, Vlad Tenev, now envisions a future where Robinhood’s millions of users can place bets on a range of events, including the performance of stocks they trade on the platform, reported The Verge.
In an interview with the publication, Tenev suggested that the burgeoning interest in prediction markets is indicative of a growing “distrust of traditional news” and a shift in the way people seek information.
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He stated, “It’s the fastest way to get information about what’s happening,” adding that prediction markets delivered clear results hours before news networks announced the election.
The CEO also touched upon the legalization of election betting in the U.S., which he believes presents a “once-in-a-lifetime opportunity to create a new innovative product and offer it to customers.”
He is optimistic about the future of prediction markets and sees Robinhood leaning into them more.
Tenev also shared his thoughts on the potential of prediction markets in financial markets, sports betting, and beyond. He believes these markets could offer a more accurate method of hedging risk or speculating on company performance.
Why It Matters: Robinhood’s prediction market has seen significant activity since its launch. The platform’s election contracts surpassed 200 million trades on Election Day itself.
This rapid growth continued, with Robinhood witnessing a record overnight trading volume, with 400 million 2024 election contracts traded.
Last month, Robinhood Markets posted quarterly earnings of 17 cents per share, aligning with analyst expectations.
Revenue for the quarter reached $637 million, slightly below the forecasted $650.67 million but marking a 36.4% increase from $467 million in the same quarter last year.
Price Action: Block’s shares closed Friday up 4.02% at $30.54. In after-hours trading, the stock saw further gains, reaching $30.60 as of this writing, according to Benzinga Pro
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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