Prediction markets have taken the financial and gaming world by storm over the past year. The space has grown substantially as platforms like Kalshi and Polymarket received regulatory a green light to offer not just political event contracts but also sports event contracts.
Following this success, several fintech companies have thrown their hats into the prediction markets ring. Some are partnering with the likes of Kalshi and Polymarket, while others are launching their own exchange platforms. Some fintechs are also avoiding more retail-driven prediction markets, like sports events.
Webull (BULL 4.22%), Robinhood Markets (HOOD 1.74%), and Interactive Brokers (IBKR 1.03%) are three fintech stocks with exposure to this trend. Let's examine each one and assess the potential impact of prediction markets on their future performance.
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Webull may be in for a rebound, in part due to prediction market growth
Shares in online brokerage Webull have struggled since their debut via a special purpose acquisition company (SPAC) merger last spring. Although the stock initially bolted from around $12 to nearly $80 per share, it quickly coughed back those gains and then some. Concerns about the company's ties to China have weighed heavily on shares.
NASDAQ: BULL
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Nevertheless, Webull continues to report strong growth. During the third quarter of 2025, total revenue increased 55% year over year, and the company swung from a loss to positive net earnings. Webull's move into the prediction markets last year, via a partnership with Kalshi, likely contributed to its performance.
For 2026, sell-side analysts anticipate a slight earnings decline. However, prediction markets, coupled with continued growth in Webull's stock, options, and crypto trading volumes, could yield better-than-expected results, spurring a recovery.
Prediction markets may or may not get Robinhood out of its current slump
Robinhood shares were on a tear for most of 2025. Since October, however, this popular brokerage stock has entered a slump, largely due to the company reporting an unexpected drop in stock and crypto trading volumes during November.
However, investors remain hopeful about the excitement surrounding Robinhood's prediction markets business. Robinhood, through a partnership with Kalshi, entered the space earlier last year, but in December announced a major expansion of the types of prediction contracts users can trade.
NASDAQ: HOOD
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Yet while there's much excitement around Robinhood's prediction pivot, keep in mind that preliminary December trading data suggests the weakness first reported in November may persist. Investors may want to wait for subsequent trading volume data before buying.
Interactive Brokers is taking a less "sporting" approach to the prediction markets
Interactive Brokers is another brokerage that has entered the fray in prediction markets. That said, it's not as if you can currently make "predictions" on the outcome of NFL games on the Interactive Brokers platform.
NASDAQ: IBKR
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Instead, its ForecastTrader program offers contracts only on political, economic, and climate events. With its more targeted user base, don't expect this platform to be as much of a needle mover for Interactive Brokers as Robinhood's and Webull's platforms. Still, there are other reasons to be bullish.
While pricey at 33 times forward earnings, the company's projected earnings growth remains moderately high. Sell-side analyst forecasts call for earnings growth of 11.4% and 12.3%, respectively, during 2026 and 2027. Such results may help the stock sustain its rich valuation, with shares rising in line with earnings growth.
