Ahead of the report, traders considering this leveraged ETF should examine some of the catalysts that could move Robinhood shares. It should also be noted that HODU attempts to deliver 200% of the daily returns of the financial services stock. That is to say, this is a short-term ETF, not one that should be treated as a buy-and-hold fund.
Heading into Robinhood earnings, Wall Street is bullish on the financial services stock. On Monday, Needham reiterated a “buy” rating on the stock, while boosting its price target to $123 from $97. Citing strength across various business lines, including cryptocurrency, equities, options and prediction markets, Needham boosted its 2026 and 2027 revenue estimates on Robinhood. It noted that the brokerage firm’s core retail customer remains heavily engaged with the platform.
Speaking of Prediction Markets…
In recent months, prediction markets have increasingly become a focal point in the Robinhood investment thesis. It’s an issue for traders considering HODU to stay abreast of as well.
In fact, the timing of Robinhood’s second-quarter earnings report could be pivotal to the short-term HODU thesis. That update arrives just 10 days after the conclusion of the World Cup. The global event stirred significant event contract activity for Robinhood.
Should the fintech company provide bullish commentary on World Cup event contract effects and the performance of Rothera — a separate event contract exchange in which Robinhood and Susquehanna International Group are investors — that could be a catalyst for HODU upside.
On Monday, Bernstein analyst Gautam Chhugani boosted his price target on Robinhood to $160 from $130, due in part to strength in the company’s prediction market business. The analyst noted that during the second quarter, revenue generated from event contracts could surpass Robinhood’s cryptocurrency transaction revenue.
Chhugani estimated that the World Cup accounted for 93% of Rothera volume. However, it’s worth noting that the entity has only been handling yes/no trades since May. Importantly, the Bernstein analyst noted that Rothera accounts for just 16% of Robinhood’s prediction market volume. The bulk of the remaining 84% is derived from a partnership with Kalshi.
It’s not guaranteed, but if Robinhood hints at driving more event contract turnover to Rothera, that could spark both the stock and Direxion’s HODU.
For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.
