Record June Volumes Propel Robinhood Buy Rating Despite Meta’s Arena App
HOOD•Truist Securities reiterated a Buy rating on Robinhood with a $100 price target after June equities, options and prediction market volumes pointed to record Q2 transaction revenues. Meanwhile, Meta Platforms is developing a points-based prediction market app called “Arena,” driving Robinhood shares down roughly 1% on heightened competition fears.
1. Truist Bullish After Record June Volumes
Truist reiterated a Buy rating with a $100 price target after reporting that equities, options and prediction market trading in June are pacing for record transaction revenues, implying mid-to-high single-digit upside to Q2 revenues. Cantor Fitzgerald and Argus also raised price targets to $130 and $110 respectively, highlighting growth drivers such as the Rothera launch and efficiency gains from a 10% workforce reduction.
2. Meta Launches 'Arena' Prediction Market
Meta Platforms is internally calling its new prediction market app “Arena,” which will initially use a points-based system with the option for real-money bets later, leveraging its 3.5 billion daily users across Facebook, Instagram and WhatsApp to drive adoption. The standalone app represents Meta’s second foray into prediction markets following its 2020 Forecast launch and will operate separately from its existing social platforms.
3. Competitive Impact on Robinhood Stock
News of Meta’s Arena development sent Robinhood shares down about 1% as investors weigh intensifying competition in prediction markets pioneered by Polymarket and Kalshi. The juxtaposition of robust trading volumes and emerging threats underscores the need for Robinhood to clarify its strategic response and defend its market position.
