Robinhood is making a move in prediction markets. Deutsche Bank thinks it could turn the stock around

Price Target

$98

Deutsche Bank's revised price target for Robinhood's stock.

Potential Gain

11%

The implied gain from Robinhood's stock closing price prior to the announcement.

Contracts Traded

16 billion

The total number of contracts traded in the prediction markets year-to-date in 2026.

§ 01 Executive Snapshot

What: Robinhood is entering prediction markets with its new platform, Rothera, potentially boosting its stock value.
Who: Robinhood, Deutsche Bank, Susquehanna International Group.
Why it matters: This move could turn around Robinhood's stock, which has fallen over 40%, and capitalize on the growing prediction markets sector.

Deutsche Bank reiterated a buy rating on Robinhood's stock and raised its price target to $98, indicating an 11% potential gain.
Robinhood will direct select event contracts related to the World Cup and professional baseball to its Rothera prediction market.
Rothera's fee structure will be capped at 1 cent per contract, undercutting Kalshi's maximum of 2 cents.

The prediction markets sector has seen a surge, with over 16 billion contracts traded year-to-date in 2026.
Robinhood's strategic timing with the 2026 World Cup aims to enhance user engagement in this rapidly growing asset class.

Immediate competitive advantage could arise from Rothera's lower fees, attracting more traders to Robinhood's platform.
Long-term, this move positions Robinhood as a leader in the evolving prediction markets space, enhancing its overall market presence.

Potential execution risks related to the integration of Rothera and maintaining user engagement amidst competition from platforms like Kalshi.
Regulatory scrutiny over prediction markets could pose challenges in the future, impacting operational flexibility.

Monitor the user participation rates on Rothera following its launch, particularly during major events like the World Cup.
Future developments in Robinhood's stock performance and market share in prediction markets will signal the success of this initiative.

§ 07

What is Rothera?

Rothera is Robinhood's new platform for entering prediction markets, which could potentially boost its stock value.

Why is Deutsche Bank optimistic about Robinhood's stock?

Deutsche Bank reiterated a buy rating on Robinhood's stock and raised its price target to $98, indicating an 11% potential gain.

How does Rothera's fee structure compare to competitors?

Rothera's fee structure is capped at 1 cent per contract, which undercuts Kalshi's maximum fee of 2 cents.