Shares of US neobroker Robinhood Markets Inc (NASDAQ:HOOD) hit a new all-time high of $136.84 on Monday, before closing the day at $136.72, up 12.3% from Friday’s close. At its current share price Robinhood has a valuation of more than $121 billion.
Robinhood shares are now up by 35% since it was announced earlier this month that the company would be added to the S&P 500 Index. Year to date in 2025, Robinhood shares are up 267%.
Robinhood and Sports Betting
As to the reason(s) for the latest share price surge, Robinhood did not make any formal announcements over the weekend or on Monday. However Robinhood CEO Vlad Tenev took to X.com (formerly Twitter) on Monday morning, posting a chart captioned by “Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started. ”
Robinhood Prediction Market Growth. Source: @vladtenev on X.com.
Later in the day Vlad Tenev returned to X.com, essentially teasing those who have been shorting Robinhood shares, sharing two tweets (and accompanying picture):
- “Short selling involves unlimited risk.”
- “Shorting on Robinhood. Soon for bears of all sizes.”
Robinhood’s Prediction Markets is (mainly) sports betting, allowing Robinhood clients to use an “Event Contract”, or binary option, to make a prediction on the outcome of an event – such as a College or NFL Football game. And it looks like sports betting is a new big growth area for Robinhood, beyond its strengths in retail stock trading, and crypto trading.
Institutional Ownership
Another trend sending Robinhood stock higher has been increased buying by institutional investors and professional hedge funds. While Robinhood shares have long been a darling of the market it serves – retail traders and investors – the company’s success and addition to the S&P 500 Index has brought more institutional money into the stock.
According to several reports, institutional investors and hedge funds now hold more than 90% of publicly available Robinhood shares.
Robinhood is still a few weeks away from releasing its Q3 2025 results (Q3 of course closes today). The expectation among traders and investors clearly is that Robinhood is going to report a blowout quarter, even though the summertime months, which make up the bulk of Q3, are often quieter trading volume-wise.
Robinhood share price 2025 year-to-date. Source: Google Finance.
