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Just For You Robinhood's NFL Parlay Push Could Turn Prediction Markets Into a Real Revenue EngineWritten by Jordan Chussler. Article Published: 12/26/2025. 
Article Highlights - Robinhood has announced that it is expanding its prediction markets feature to include NFL prop bets and parlays.
- The stock is up nearly 205% this year, but that momentum could carry into 2026 as more users are drawn to the app and away from competitors like DraftKings and FanDuel.
- Despite those gains, analysts still see more than 14% potential upside for HOOD over the next 12 months.
When you think of financial sector stocks, companies like JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) are likely to come to mind. But since its initial public offering on July 29, 2021, perhaps no fintech company has differentiated itself from the pack more than Robinhood (NASDAQ: HOOD). Nvidia's latest AI chip is a $25,000 powerhouse — with 80 billion transistors and the ability to perform 60 trillion calculations per second. Elon Musk and Nvidia's Jensen Huang are now teaming up to deploy one million of these chips inside what could become the most advanced AI machine on the planet.
But according to James Altucher, the real opportunity isn't in Tesla or Nvidia. He's uncovered a little-known company that Musk, Nvidia, and even 98% of the Fortune 500 already rely on to make AI 2.0 possible. Nvidia's CEO has even called this company "essential" to their expansion. See how to invest in this revolutionary AI supplier here The financial services company may be best known for its mobile-first brokerage platform, a favorite among retail investors, which aims to "democratize finance for all," according to the company. Now Robinhood is looking to expand beyond equities and derivatives by setting its sights on the NFL prop-bet and parlay market, immediately emerging as a competitor to online sportsbooks including Hard Rock Bet, DraftKings (NASDAQ: DKNG), and Flutter Entertainment's (NYSE: FLUT) FanDuel. Sports Betting Has Become Very Big Business Since the U.S. Supreme Court effectively opened the market in 2018, online sports betting has become the fastest-growing segment of gambling. Now legal in 35 states and Washington, D.C., the availability of betting apps lets users place wagers around the clock. The combination of mobile technology and convenience has been a major growth driver, with younger Americans in particular gravitating to online sportsbooks. With the NFL and college football playoffs quickly approaching, that provides a short-term catalyst—and Robinhood wants in on the action. According to industry consultancy Grand View Research, the sports betting market is projected to grow at a compound annual growth rate (CAGR) of 11% from 2025 to 2030, rising from roughly $100 billion to more than $187 billion over the forecast period. Robinhood's Foray Into Prediction Markets The move into prop bets and parlays builds on the company's success with prediction markets—Robinhood's fastest-growing product. That feature lets users place wagers not only on sports events but also on items such as who will win the Grammy for Song of the Year, how many subscribers Mr. Beast will have by year-end, and who is most likely to host Saturday Night Live during its 51st season. Sports remain the biggest draw, especially for Robinhood's target demographic of young and often first-time bettors. JB Mackenzie, vice president and general manager of futures and international, told CNBC that users can currently trade preset combinations for game outcomes, point totals, and spreads of individual NFL games. Beginning in 2026, users will be able to create custom combos (e.g., parlays) across NFL games. CNBC also reported that Robinhood's prediction markets are already contributing materially to the business, and the feature is on pace to become a $300 million revenue driver in 2025. In November alone, the platform saw more than 3 billion prediction market contracts traded, a 20% increase over October. Bolstered Revenue Could Produce More Consistent Results With the expansion of its prediction-market offerings, Robinhood aims to bolster revenue and produce more consistent earnings outcomes. Over the past five quarters, the company has missed earnings-per-share (EPS) expectations twice. At the same time, Robinhood missed revenue only once in that stretch—but that miss was substantial. Analysts expected roughly $930 million in quarterly revenue in Q4 2024, but the company reported $637 million, a shortfall of about 31.5%. Net income turned positive last year for the first time since the company went public, but its $556 million in Q3 net income was well below the $916 million reported in Q4 2024. Similarly, net cash from operating activities, which reached $3.509 billion in Q2 of this year, swung to a loss of $1.576 billion in Q3—a nearly 145% decrease. In that light, success with and expansion of the prediction markets platform could be key to delivering more consistent financial results in 2026 and beyond. Despite Eye-Catching Gains in 2025, HOOD Remains Attractively Rated Despite those mixed results, the stock has enjoyed an exceptional run this year. HOOD is up nearly 205% in 2025, and that momentum could continue as more users are drawn to the app's expanded feature set and away from competitors like Hard Rock Bet, DraftKings and FanDuel. Analysts still see about 14% potential upside over the next 12 months for the stock, which carries a Moderate Buy rating. The stock also has very high institutional ownership—more than 93%—while short interest is modest at 5.78% of the float.
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