Robinhood Markets HOOD new election prediction market is reshaping how folks devour info, with CEO Vlad Tenev saying it may 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 tens of millions 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 instructed that the burgeoning curiosity in prediction markets is indicative of a rising “mistrust of conventional information” and a shift in the best way folks search info.
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He acknowledged, “It’s the quickest strategy 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 progressive 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 may provide a extra correct methodology of hedging danger 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 fast development continued, with Robinhood witnessing a report 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 under the forecasted $650.67 million however marking a 36.4% improve from $467 million in the identical quarter final 12 months.
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 accordance with Benzinga Professional
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