Shares of Robinhood Markets (HOOD) have shed roughly a quarter of their value this year, but the company is making moves to end that slide. Some analysts are taking note.
This may be a signal for nimble, short-term traders to evaluate the Direxion Daily HOOD Bull 2X ETF (HODU). The ETF is designed to deliver 200% of the financial services stock’s daily performance. Last Friday, Robinhood landed a bullish price target revision from Deutsche Bank analyst Brian Bedell. In reiterating a “buy” rating on the stock, Bedell boosted his price target to $98 from $88. This implies an upside of 11% from the June 4 close.
Bedell’s bullishness on the stock is partly due to the company’s prediction market efforts. With sports derivatives still accounting for a massive percentage of volume on yes/no exchanges and with the World Cup starting this week, event contracts could be a near-term catalyst for Robinhood and the leveraged HODU.
See more: With Robinhood Growth Still Solid, Monitor This ETF
Prediction Markets Could Propel HODU
Robinhood has frequently noted that prediction markets are one of its fastest-growing businesses, which alone could spell occasional opportunity with HODU. However, traders also have reasons to evaluate the Direxion ETF ahead of the World Cup.
Last Thursday, Robinhood announced that it will route some of its World Cup (and Major League Baseball) derivatives volume through Rothera — its internal prediction market. This means that the exchange is moving some volume away from partner Kalshi. However, it also indicates that the company is confident enough in its product that it’s willing to put Rothera to the test during a marquee event such as the World Cup.
“We are adjusting our estimates for prediction market volumes and revenue following the June 4th launch of Rothera, a new prediction exchange managed with Susquehanna as the key liquidity provider. In our 1Q earnings note, we expected the Rothera launch to be a key positive for the stock to rebound,” said Bedell.
Projected Growth
Perhaps lost in the Robinhood story this year is the extent to which the company’s event contracts are growing. Its year-to-date volume has already exceeded the pace set over the entirety of 2025. If more investors awaken to that benefit, HODU could also benefit.
“Management cited very strong May volumes at a recent industry conference (ahead of the full metrics release scheduled on June 9 next week), and Thursday’s Rothera launch is strategically timed with the 2026 World Cup to drive engagement on this fast-growing asset class, which has already seen over 16bn contracts traded year-to-date in 2026 (implying ~4bn contracts in May, which is tracking above our prior 2Q estimate),” added Bedell.
The analyst also mentioned that Robinhood is wrapping up its acquisition of WonderFi. A move that will bring 300,000 funded Canadian accounts to the table. Entering the back half of 2026, that could certainly light another spark for the stock and HODU.
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