Robinhood Markets, Inc. (NASDAQ:HOOD) shares traded lower in the premarket session on Tuesday.
Piper Sandler lifted its price forecast to $155 from $140 and reiterated an Overweight rating, signaling optimism around product expansion.
The upbeat target arrives as the brokerage platform reportedly explores ways to broaden its reach, including a potential push into prediction markets through acquisitions if compelling targets emerge.
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That strategic lens—and the timing ahead of a heavy news and election cycle—has stoked investor debate over growth optionality, Reuters reports.
In an interview with Reuters, JB Mackenzie, vice president and general manager of Futures and International at Robinhood, said the company remains open to dealmaking in event-based trading.
Mackenzie told the outlet that the firm would explore potential acquisitions in prediction markets while weighing deals against its ability to build features in-house, noting its strong engineering capabilities.
Event contracts—wagers tied to discrete outcomes—have evolved from a niche curiosity to a fast-growing corner of retail speculation, spanning elections, central-bank moves and major sports.
Startups such as Underdog have leaned in, while larger trading apps are assessing how to package the format for high-frequency, low-ticket activity that can lift engagement and diversify revenue, Reuters adds.
According to Benzinga Pro, HOOD stock has gained over 421% in the past year. Investors can gain exposure to the stock via the YieldMax Dorsey Wright Hybrid 5 Income ETF (NASDAQ:FIVY).
Robinhood will release its third-quarter 2025 financial results on Wednesday, November 5, 2025, after the market close.
Price Action: HOOD shares are trading lower by 2.9% to $136.60 premarket at last check on Tuesday.
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