Robinhood’s CEO Says a Prediction Markets ‘Supercycle’ Is Just Starting

Investors dumped shares of Robinhood Wednesday after the company reported disappointing quarterly results. Its CEO says they should be excited about its newest slate of offerings, particularly in prediction markets.

“We’re just at the beginning of a prediction market supercycle that could drive trillions in annual volume over time,” Vlad Tenev told investors during the company’s earnings call late Tuesday, according to a transcript provided by AlphaSense.

Robinhood said in its earnings report that its prediction markets volume more than doubled in the fourth quarter, with $12 billion in contracts in the first full year of operations in 2025. The company said it’s already at $4 billion so far this year.

Tenev said on the call that Robinhood still plans to bring its own prediction market—operated as a joint venture with market maker Susquehanna International Group—online later this year. The move could give Robinhood more control over what contracts are offered, and better margins than partnering with another exchange operator.

Shares of Robinhood (HOOD) plunged close to 9% Wednesday after the retail brokerage posted fourth-quarter revenue that missed analysts’ estimates, as cryptocurrency trading volumes plunged amid a pullback in the price of bitcoin and other major coins.

Tenev told CNBC in a televised interview Wednesday that he’s “very bullish” on the crypto industry in the long run, and that the company plans to continue expanding its crypto offerings along with its rapidly growing prediction markets business.

Investors could get more details on Robinhood’s upcoming projects next month, when the company hosts its “Take Flight” event scheduled on March 4, where Tenev is expected to introduce new products.

With Wednesday’s drop, shares of Robinhood have lost nearly a third of their value year-to-date.