Robinhood Markets HOOD new election prediction market is reshaping how individuals eat info, with CEO Vlad Tenev saying it might redefine how customers get real-time information.
What Occurred: Robinhood’s prediction market was unveiled every week earlier than 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 the place Robinhood’s hundreds of thousands of customers can place bets on a variety of occasions, together with the efficiency of shares they commerce on the platform, reported The Verge.
In an interview with the publication, Tenev steered that the burgeoning curiosity in prediction markets is indicative of a rising “mistrust of conventional information” and a shift in the way in which individuals search info.
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He acknowledged, “It’s the quickest approach to get details about what’s taking place,” including that prediction markets delivered clear outcomes hours earlier than information networks introduced the election.
The CEO additionally touched upon the legalization of election betting within the U.S., which he believes presents a “once-in-a-lifetime alternative to create a new revolutionary product and provide it to prospects.”
He’s optimistic about the way forward for prediction markets and sees Robinhood leaning into them extra.
Tenev additionally shared his ideas on the potential of prediction markets in monetary markets, sports activities betting, and past. He believes these markets might provide a extra correct methodology of hedging threat or speculating on firm efficiency.
Why It Issues: Robinhood’s prediction market has seen important exercise since its launch. The platform’s election contracts surpassed 200 million trades on Election Day itself.
This speedy progress continued, with Robinhood witnessing a file in a single day buying and selling quantity, with 400 million 2024 election contracts traded.
Final month, Robinhood Markets posted quarterly earnings of 17 cents per share, aligning with analyst expectations.
Income for the quarter reached $637 million, barely beneath the forecasted $650.67 million however marking a 36.4% enhance from $467 million in the identical quarter final yr.
Value Motion: Block’s shares closed Friday up 4.02% at $30.54. In after-hours buying and selling, the inventory noticed additional positive aspects, reaching $30.60 as of this writing, in line with Benzinga Professional
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