Morgan Stanley Upgrades Robinhood Rating, Says Prediction Market Business Validates Revenue Expansion Potential

According to Bloomberg, Morgan Stanley analyst Michael Cyprys upgraded Robinhood Markets' stock rating from "underweight" to "overweight," citing that its prediction market business provides "validation" for the company's continued revenue growth. Cyprys noted that Robinhood's prediction market users have surpassed 2 million, contributing $156 million in revenue in the second quarter while also driving users to adopt other products.