Robinhood's stock has skyrocketed 266% this year, reaching a market cap of over $106 billion, driven by its expanding prediction market in collaboration with Kalshi. The platform has seen 4 billion event contracts transacted, with 2 billion in the third quarter alone. This expansion into crypto and layer-2 solutions positions Robinhood against competitors like Polymarket, Kraken, and Coinbase. Despite the impressive growth, Robinhood's stock faces valuation concerns, with a forward P/E ratio of 80, far exceeding the sector median of 11. Technical indicators suggest the stock is overbought, raising the possibility of a market correction.