Robinhood Is Making Big Strides Into Prediction Markets. Here's How Increased Sports Betting Could Affect the Stock in 2026.

Crypto and stock trading have been major catalysts for Robinhood (NASDAQ: HOOD), which helped it beat the S&P 500 (SNPINDEX: ^GSPC) in 2025. Robinhood shares almost tripled that year, while the S&P 500 managed a 17% gain.High-growth companies must continue to innovate if they want to outperform the stock market, and prediction markets are Robinhood's path to higher gains. The fintech company first rolled out prediction markets in October 2024 for the U.S. election, but it has since expanded to sports and general YES/NO events.The line between prediction markets and sports betting is razor thin. Prediction markets involve peers predicting if a certain event will occur and putting money on the line in a peer-to-peer structure. Meanwhile, the traditional sports betting model involves people betting against the house, which is the sportsbook operator in the case of sports betting sites.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool