What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) jumped 8.2% in the afternoon session after it announced a new joint venture with Susquehanna International Group to acquire a 90% stake in the regulated exchange MIAXdx, a move to significantly bolster its prediction markets business.
The deal positioned Robinhood to launch its own futures and derivatives exchange and clearinghouse by 2026. This allowed the company to manage execution and clearing internally, making prediction markets a core part of its long-term plan. The move built on the early success of the product, which had become the company's fastest-growing line by revenue, with customers having traded roughly 9 billion contracts since its launch. Following the announcement, Piper Sandler reiterated an Overweight rating on the stock, calling the deal "quite positive" and estimating it could boost Robinhood's prediction market economics by about 45%.
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What Is The Market Telling Us
Robinhood’s shares are extremely volatile and have had 60 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6.6% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Robinhood is up 222% since the beginning of the year, but at $126.87 per share, it is still trading 16.8% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,644.
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