Robinhood Stock on Edge as Kalshi Moves Deeper Into US Stock Trading
Robinhood Markets (NASDAQ: HOOD ) stock came under intense pressure this week, sliding into a local correction after falling about 10% from its yearly high. The drop followed Kalshi’s announcement that it was entering the stock trading market. Kalshi to File for Stock Trading Industry Kalshi and Polymarket have already disrupted the online sports betting industry, with top companies like DraftKings (NASDAQ: DKNG ) and Flutter Entertainment (NYSE: FLUT ) falling by 30% and 50% this year, respectively. That’s because their services have continued to see significant demand from customers. Now, Kalshi is aiming to disrupt the stock market trading industry. The company will file for regulatory approval to offer the single-stock perpetual futures contract in the US. It also aims to start offering commodities trading, including products in the agriculture sector. In a Bloomberg interview, Tarek Mansour said: "It’s about time that these products come to the US, under a regulated umbrella with the right set of guardrails and customer protection." Initially, the company aims to offer perpetual futures on companies with a market capitalization of over $100 billion. It also aims for the suppor
Robinhood Markets (NASDAQ: HOOD ) stock came under intense pressure this week, sliding into a local correction after falling about 10% from its yearly high. The drop followed Kalshi’s announcement that it was entering the stock trading market. Kalshi to File for Stock Trading Industry Kalshi and Polymarket have already disrupted the online sports betting industry, with top companies like DraftKings (NASDAQ: DKNG ) and Flutter Entertainment (NYSE: FLUT ) falling by 30% and 50% this year, respectively. That’s because their services have continued to see significant demand from customers.
Now, Kalshi is aiming to disrupt the stock market trading industry. The company will file for regulatory approval to offer the single-stock perpetual futures contract in the US. It also aims to start offering commodities trading, including products in the agriculture sector. " Initially, the company aims to offer perpetual futures on companies with a market capitalization of over $100 billion.
It also aims for the supported companies to have daily trading volume of over $450 million. The company’s futures products will trade for 23 hours a day for five days a week. Read Also: FOMC Interest Rate Preview: Can the Fed Calm Surging Bond Yields? This business may have an impact on companies like Robinhood Markets, Webull, Interactive Brokers, and eToro.
Also, likely, Polymarket will also start offering these services in the US. Robinhood Markets May Face More Competition From Hyperliquid Most notably, Robinhood will also contend with more competition from Hyperliquid, the biggest player in perpetual futures globally. In a recent statement, President Donald Trump said that he will be open to having the company coming to the US. The Commodity Futures Trading Commission (CFTC) suggested that it may allow it to come to the US.
Such a move would be a big one since Hyperliquid handles over $200 billion in transactions each month. On the positive side, Robinhood Markets has accumulated over 27 million customers in the US. It has also added more services in its platform, which has helped it to create a moat. In addition to stock trading, the company now offers early dividends, wealth management, IPO solutions, and retirement services.
Robinhood is also expanding Rothera, its joint venture with Susquehanna. It aims to move most of its prediction markets from Kalshi to Rothera, which will help it to capture more of the margins. These products have helped to boost its revenue over time. 308 billion, and the management expects the growth to continue.
Analysts are optimistic that the HOOD stock will jump by 20% to $133. Read Also: VOO ETF Inflows Jump, Chart Forms Bullish Flag as S&P 500 Valuation Falls Below Five-Year Average Image: Shutterstock