Morgan Stanley upgraded Robinhood to Overweight from Underweight, citing its fast-growing prediction market business as a key driver of continued revenue growth, Bloomberg reported. Analyst Michael Cyprys said the segment now has more than 2 million users and generated $156 million in second-quarter revenue. Second-quarter data showed prediction market revenue had already exceeded Robinhood’s cryptocurrency trading revenue. Cyprys also pointed to rising assets per customer, user activity and monetization, while highlighting potential catalysts including perpetual contracts and agency trading. Robinhood Banking assets have surpassed $4 billion, and the FIFA World Cup in July served as a testing ground for Rothera, its derivatives exchange joint venture with Susquehanna.