Robinhood Markets (HOOD) has nearly tripled in value over the past year and was one of 2025’s best-performing brokerages. Lately, however, some wind has come out of the high-flying stock’s sales. It faced a 5.12% decline over the past month.

Risk-tolerant traders may view that pullback as an opportunity to get involved with the Direxion Daily HOOD Bull 2X ETF (HODU) on a short-term basis. That ETF is designed to deliver 200% of the daily returns of the financial services stock.

For active traders, HODU is a credible way of playing a potential Robinhood rebound. The company frequently introduces new products and services, generating the headlines that can move ETFs like HODU. In fact, those announcements proved to be lynchpins of the company’s exciting growth story last year.

“These continued prospects for growth, combined with attractive scale economics, should allow for ongoing margin expansion, despite leading pricing,” said Truist Securities analyst David Smith in a December note to clients.

HODU Could Have Plenty of 2026 Tailwinds

One area that could generate the buzz needed to move HODU over the course of 2026 is prediction markets. Last month, Robinhood unveiled a significant event contracts push, including efforts to support its sports derivatives offerings.

“Customers will be able to trade preset combos for individual Pro Football games, giving them another way to turn their nuanced sports knowledge into an investing opportunity,” according to a statement. “These will be a combination of the outcomes, totals, and spreads within a single game. Like any event contract, these combos will pay $1 dollar, but only if each of the outcomes in the contract resolves correctly.”

Beyond prediction markets, there are other reasons HODU could spend time in the spotlight and some are imminent. Robinhood is scheduled to deliver fourth-quarter results on Feb. 10. Analysts expect the company to post earnings per share of 58 cents and there is some belief that lofty expectations are prompting skittish investors to sell the stock.

Another way of looking at that scenario is that if the company beats the consensus estimate and guides higher for the current quarter (or the entirety of 2026), the stock could rapidly snapback, providing the short-term energy necessary to jolt HODU to the upside.

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