Robinhood’s stock is surging after signing a deal with Kalshi to bring NFL and college football betting markets to its platform. However, the sky-high valuation poses a significant downside risk for investors. The prediction markets segment is currently generating revenue at an annualized rate of $200 million, but it’s a small part of Robinhood’s overall business. The company’s core revenue, especially from cryptocurrency trading, has been shrinking, leading to concerns about the sustainability of its stock price. Investors should be cautious ahead of the company’s third-quarter results on Nov. 5.

Read more at Nasdaq: Should You Buy Robinhood Stock Before Nov. 5, or Run for the Hills?