Robinhood Markets Inc. (NASDAQ:HOOD) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. ARK Investment Management substantially reduced its Robinhood position in Q3, decreasing its share count by nearly 36% to 5.02 million from 7.79 million. By quarter-end, the stake represented around 4.3% of ARK’s 13F portfolio and was valued at approximately $718 million.
On November 25, Robinhood Markets Inc. (NASDAQ:HOOD) announced its plans to launch a new futures and derivatives exchange and clearinghouse. This move is expected to expand its presence in prediction markets and support long-term positioning. Management noted that its prediction markets revenue growth has accelerated meaningfully recently, with more than 9 billion contracts traded by over 1 million users in the first year of launch.
The exchange will operate through a joint venture led by Robinhood Markets as the controlling partner. Another key partner will be Susquehanna International Group, which will be a day-one liquidity provider. To accelerate regulatory readiness, the venture will acquire MIAXdx, a CFTC-licensed Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO). MIAXdx is a wholly owned subsidiary of Miami International Holdings Inc. (NYSE:MIAX), which will retain a 10% strategic stake in the exchange under the terms of the deal.
The JV’s operations are expected to begin in 2026 and position Robinhood for deeper participation in the rapidly expanding derivatives and prediction markets.
Earlier, on November 17, Gautam Chhugani, an analyst at Bernstein, had reaffirmed a Buy rating on Robinhood with an unchanged price target of $160. Overall, the consensus remains a strong Buy on the stock, with a 1-year median price target of $155, representing a further 34% upside.
Robinhood Markets Inc. (NASDAQ:HOOD) is a U.S.-based retail brokerage and trading platform that enables individual investors to trade stocks, options, futures, and cryptocurrencies, mainly through a zero-commission model.
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Disclosure: None. This article is originally published at Insider Monkey.