HOOD Stock Gains After Price Target Hike Driven By Rothera's Prediction Market Success

• Goldman Sachs raised Robinhood's price target to $142, on the back of the early success of its prediction market Rothera.
• According to Goldman Sachs analyst James Yaro, Rothera generated approximately $150 million in annualized revenue in its first quarter.
• Robinhood was also named an underwriter on Oura's IPO, its first such role since receiving regulatory approval in June.

Robinhood Inc. (HOOD) shares gained in pre-market trade after Goldman Sachs raised its price target the stock to $142 from $124 and reiterated a 'Buy' rating, citing early scaling of the brokerage's prediction market exchange, Rothera. 

In a note to investors cited by TheFly, analyst James Yaro said Rothera has been amongst the three biggest prediction market exchanges in the world by volume since its launch in May 2026, and had about $150 million in annualized revenue in its first quarter. He attributed the success to deep liquidity, low fees, and the ability to scale to more brokers and products.

HOOD stock was up over 2% in pre-market trade. On Stocktwits, HOOD was one of the top trending tickers. Retail sentiment around HOOD remained in the 'bullish' zone, accompanied by 'high' chatter levels over the past day. Goldman Sachs price target of $142 implies an upside of 16% from HOOD stock's Friday close of $122.

Goldman Sachs Bets On Prediction Market Growth

Goldman Sachs base case is $307 million of Rothera revenue in 2027, about 5% of its total Robinhood revenue estimate and 1% market share, reported Investing on Tuesday. 

Robinhood Expands Crypto Ties With Crypto

As part of its multi-year deal, Robinhood also reportedly will add yes-or-no event contracts offered by Crypto's (CRO) OG business to its app and take minority stakes in the exchange and its prediction market division, according to the Wall Street Journal. 

Crypto said it has spun OG out into a standalone company. However, it did not disclose terms, including the size of Robinhood's investment. Citadel Securities took stakes in both companies in July, valuing Crypto at $15 billion and OG at $5 billion, according to the report.

Crypto CEO Kris Marszalek told the Journal that the event contracts are "the beginning of a very strategic relationship," adding that the companies have discussed equity-linked perpetual futures pending regulatory approval. Crypto is also planning an initial public offering, but there is no timetable for it, he said.

CRO's price was up over 4% in the last 24 hours, hitting its one-month high. On Stocktwits, CRO was one of the top trending tokens. Retail sentiment around CRO improved to 'bullish' from the 'bearish' zone, while chatter rose to 'high' from 'low' levels over the past day.

Robinhood's First Underwriter Gig

The timing for the deal also falls on the same day Robinhood was named an underwriter on smart-ring-maker Oura's IPO filing, its first such role since being authorized by regulators to underwrite deals in June. 

Goldman Sachs, Morgan Stanley (MS), J.P. Morgan (JPM), Allen & Co., and Jeffries are the lead bookrunners, and former Robinhood' Strategic Advisor and former Chief Financial Officer Jason Warnick is expected to join Oura's board of directors.

HOOD stock has been up over 7% this year and nearly 19% over the past 12 months.

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