Robinhood Enters Prediction Markets with Susquehanna; Nutanix Stock Slides on Revenue Warning
## Executive Summary
This report details two significant, independent market events. First, **Robinhood Markets** and **Susquehanna International Group** announced a joint venture to acquire the **LedgerX** exchange, signaling a strategic push into regulated prediction markets. Second, cloud computing firm **Nutanix** saw its stock fall after cutting its revenue forecast, leading to revised price targets from Wall Street analysts, including **JP Morgan**.
## The Events in Detail
### Robinhood's Strategic Entry into Prediction Markets
**Robinhood (HOOD)** has formed a partnership with market maker **Susquehanna International Group** to establish a proprietary futures and derivatives exchange. The venture involves taking over the regulated exchange **LedgerX** from its current operator, **Miami International Holdings (MIAX)**. The new platform, expected to launch in 2026, is designed to offer prediction contracts tied to a variety of future events, including sports and elections. This move marks a significant expansion of Robinhood's offerings, aiming to capitalize on the growing interest in prediction markets and provide its retail investor base with access to new derivative products.
### Nutanix Faces Headwinds with Revised Forecast
Shares of **Nutanix (NTNX)** experienced downward pressure after the company announced a reduction in its 2026 revenue forecast and provided a second-quarter revenue outlook that fell below consensus expectations. This revision has raised concerns among investors regarding the company's growth trajectory and competitive position in the cloud infrastructure market.
## Market Implications
Robinhood's acquisition of a regulated exchange framework via **LedgerX** allows it to build and control its own clearinghouse, reducing reliance on third parties and potentially improving margins. By entering the predictions market, Robinhood aims to increase user engagement and trading volume, though it will face competition in a developing space.
For Nutanix, a lowered financial outlook in the current macroeconomic environment can lead to sustained negative investor sentiment. The guidance cut suggests potential challenges in converting sales pipelines or increased competition, impacting investor confidence in its long-term profitability and market share.
## Expert Commentary
Analysts have responded to both developments with specific rating changes. Brokerage firm **Bernstein** commented positively on Robinhood's strategic decision to enter prediction markets directly through the joint venture.
Regarding Nutanix, **JP Morgan** analyst Samik Chatterjee lowered the firm's price target to $78 from a previous $81, though he maintained an "Overweight" rating, indicating a belief in the stock's potential to outperform despite the near-term setback. Other analysts also adjusted their targets; **Bank of America** reduced its price objective from $95 to $93 while maintaining a "Buy" rating. In contrast, **Oppenheimer** initiated coverage with an "Outperform" rating and a $90 price target.
## Broader Context
Robinhood's venture reflects a broader trend of retail brokerage platforms expanding into more complex financial products to retain customers and open new revenue streams. Establishing a foothold in the regulated U.S. derivatives space provides a significant competitive advantage.
Nutanix's situation underscores the intense pressure on technology companies in the cloud sector. Investors are highly sensitive to any signs of slowing growth, and in a competitive market featuring larger players, failing to meet revenue expectations often results in a swift and negative market reaction.
Report
