Robinhood (HOOD) Surges 10.9% on Prediction Markets Expansion

We recently published 10 Big Names Feasting on Gains Ahead of Thanksgiving. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best-performing stocks on Wednesday.

Robinhood Markets extended its winning streak to a 4th consecutive day on Wednesday, climbing 10.93 percent to end at $128.20 apiece as investors took heart from its partnership with Susquehanna International Group to expand its fastest-growing prediction markets operations.

In an announcement on the same day, Robinhood Markets, Inc. (NASDAQ:HOOD) said that it joined forces with Susquehanna to launch and operate a Commodity Futures Trading Commission (CFTC)-licensed exchange and clearinghouse to capture and serve the strong demand in the prediction markets.

Robinhood Markets, Inc. (NASDAQ:HOOD) will serve as the controlling partner, while Susquehanna will help provide liquidity.

In line with the partnership, the joint venture would acquire MIAXdx—a CFTC-licensed Designated Contract Market (DCM), Derivatives Clearing Organization (DCO), and Swap Execution Facility (SEF), and wholly-owned subsidiary of Miami International Holdings, Inc. (MIAX). The latter will remain invested through a strategic 10 percent equity stake in the exchange.

Robinhood Markets, Inc. (NASDAQ:HOOD) said that the prediction markets have quickly become its fastest-growing product line by revenue, just a year after it was launched. In fact, some 9 billion contracts have already been traded by more than 1 million customers.

The exchange will serve Robinhood Derivatives and other Futures Commission Merchants, and is expected to begin operations in 2026.

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Disclosure: None. This article is originally published at Insider Monkey.