Robinhood plans prediction markets on earnings and product deliveries

Robinhood says it will be the first in the US to offer prediction markets on earnings. The planned contracts would be tied to company EPS and revenue, as well as iPhone and Tesla deliveries.

The products could let traders hedge a long position in a stock without selling shares and express a trading strategy more specifically. A correct prediction of an earnings beat does not guarantee a stock will rise: other factors, such as oil prices and interest-rate hikes, can weigh on its price.