Goldman Sachs Reiterates "Buy" Rating on Robinhood (HOOD.US), Bullish on Predictive Market and AI Advisor Upgrades

Stock News12-18 18:23

Goldman Sachs attended Robinhood's (HOOD.US) "YES/NO" product launch event on December 16, 2025, expressing incremental optimism about the company's competitiveness in predictive markets and platform trading efficiency. The bank believes the introduction of combo contracts narrows the gap with traditional online sports betting platforms, while the Cortex upgrade enhances customer experience. Goldman reiterated its "Buy" rating on Robinhood, setting a 12-month price target of $167 based on a forward P/E multiple of 62.0x for the next four quarters (Q5-Q8).

Robinhood unveiled two key initiatives at the event: 1) Multiple enhancements and upcoming features for its predictive market platform; 2) Upgrades to its proprietary AI advisor, Robinhood Cortex.

New products/features include: - Player-specific contracts for professional football - Pre-set professional football combo contracts (similar to parlay bets) - Plans to launch customizable professional football combo contracts by January 2026 - Long-term expansion into multi-market/multi-category combo contracts (e.g., sports + markets + weather) - Major Cortex upgrades, offering enhanced market analysis and streamlined trade execution

Goldman Sachs views the new combo contracts as a significant step toward aligning Robinhood’s predictive offerings with traditional online sports betting platforms, boosting competitiveness. While questions remain about liquidity for customized combo contracts, the bank sees acquisitions or joint ventures with predictive market inter-dealer brokers as constructive solutions. Multi-product combo contracts could also enable novel trading strategies.

Cortex upgrades will simplify client trading and research workflows, improving user experience. Key details include:

**Predictive Market Upgrades:** - Real-time odds, desktop trading support, and limit order functionality - Expanded sports prediction contracts, including player-specific options - The most notable addition: pre-set professional football combo contracts (similar to parlay bets). Customizable versions will launch in January 2026, with cross-category contracts (e.g., sports + weather) planned long-term.

**Robinhood Cortex (AI Advisor):** - The next upgrade, due in Q1 2026, integrates real-time financial data (technical analysis, analyst reports, portfolio data). - Voice-command trades will auto-generate execution plans for one-click confirmation. - Cortex will also sync with predictive markets.

**Portfolio Summaries:** - Cortex will provide personalized insights, including performance vs. benchmarks, upcoming event alerts, and key portfolio drivers.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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