Robinhood’s Stock Declines but CEO Remains Confident

Robinhood’s stock price declined on Feb. 25, but chair and CEO Vlad Tenev maintains a positive outlook.

In an interview on Bloomberg Crypto with Sonali Basak and Tim Stenovec, Tenev stated, “The business has been doing tremendously well.” He highlighted the company’s strong fourth-quarter results for 2024, including a record $1 billion in revenue and $50 billion in customer deposits for the year.

When questioned about the market correction tracked by Bloomberg’s Magnificent Seven index, Tenev suggested that the dip was temporary. Following a recent post-earnings rally, the market experienced a downturn, with Bitcoin (BTC) falling below $87,000.

Robinhood shares dropped by 8%, closing at $45.92, though they are still up 16% since the beginning of the year. Tenev did not attribute the stock’s decline to any specific cause beyond normal market fluctuations.

Despite the decrease, Tenev remains optimistic about user engagement: “Our customers…have a long-term perspective on these things.” He noted that many view market declines as opportunities to purchase technology stocks and cryptocurrencies, such as Bitcoin, at lower prices.

Trading Remains Active

Tenev emphasized that volatility can benefit Robinhood. Active traders continue to utilize tools like the new Robinhood Legend platform, which has generated $50 million in annual revenue since its launch. As major technology stocks enter correction territory, this trading activity could drive consistent revenue growth for the platform.