Robinhood Markets (HOOD) is now eyeing a prediction betting game with the launch of presidential election event contracts, ahead of the U.S. presidential general election on November 5.
HOOD’s Launch Into Election Trading
In this new venture, the trading platform will allow users to trade contracts related to the election outcome, including options on presidential candidates Kamala Harris and Donald Trump. However, the company has set eligibility criteria for these presidential election event contracts, requiring participants to be U.S. citizens and to trade through Robinhood’s Derivatives unit, in partnership with ForecastEx.
Furthermore, Robinhood believes that launching these event contracts will “give people a tool to engage in real-time decision-making, unlocking a new asset class that democratizes access to events as they unfold.”
Political Prediction Market Is Attracting Growing Interest
In light of this launch, there is growing interest in political predictions, even as the Commodity Futures Trading Commission (CFTC) has attempted to halt the trading of election outcome contracts. In fact, earlier this month, election betting platform Kalshi secured a significant legal win against the CFTC, which had tried to halt election outcome trading on its platform.
As a result of this legal victory, other platforms like HOOD are now diving into political markets, indicating a broader trend in the financial landscape. Though the CFTC is appealing the decision, Kalshi’s win may pave the way for even more innovation and competition in political betting.
What Is the Target Price for Robinhood?
Analysts remain cautiously optimistic about HOOD stock, with a Moderate Buy consensus rating based on nine Buys, seven Holds, and one Sell. Over the past year, HOOD has skyrocketed by more than 100%, and the average HOOD price target of $25.23 implies a downside potential of 6.8% from current levels.
