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Robinhood shares edge higher after record quarter for prediction markets business
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The company's second quarter earnings results from Wednesday afternoon showed a World Cup-powered surge has turned Robinhood's prediction markets platform into the firm's second-largest trading business.
The financial app generated $156 million in fees from prediction markets, up 50% from the first quarter.
The revenue stream was higher than transaction fees earned from its bread-and-butter stock trading ($129 million) and crypto trading ($100 million), and second only to options trading fees ($342 million).
CFO Shiv Verma said nearly 2 million people have now used prediction markets, up from roughly 1.5 million at the company's previous update.
Excluding the accounting change, Robinhood's earnings per share were $0.48 per share, still exceeding the $0.45 per share analysts forecast.