Speaker 1: Bloomberg Audio Studios, podcasts, radio news. We welcome now our
Speaker 1: Bloomberg Radio and television audiences. Robinhood is posting second quarter
Speaker 1: revenue that beat Wall Street estimates, boosted my strength and
Speaker 1: cryptocurrency trading. We're joined now by Robinhood, chairman and CEO
Speaker 1: of lad Tenev and your backup on the day, you're
Speaker 1: bringing your year to date gains for Robinhood closer and
Speaker 1: closer to two hundred percent. Your stock has just soared
Speaker 1: this year. Do you feel pressure at that valuation now
Speaker 1: to increase your growth rate to meet investor expectations.
Speaker 2: I think we're always challenging ourselves to serve our customers
Speaker 2: better and consequently grow the business. But if you're asking
Speaker 2: if I'm like looking at the stock and triving to
Speaker 2: trying to drive that directly, no, I mean we're looking
Speaker 2: at the inputs to our business and right now what
Speaker 2: we're seeing is our customers are happy. Net promoter scores
Speaker 2: are at a four year high. It's leading to net
Speaker 2: deposits which have been very strong through July, and that's
Speaker 2: leading to gains and market share across all of the assets.
Speaker 2: And you're seeing that in revenue and EPs, which have
Speaker 2: been very, very strong as well, and you know, we're
Speaker 2: having these product events where we're announcing products that are
Speaker 2: I think, far ahead of where the rest of the
Speaker 2: industry is. So I don't think it's slowing down where
Speaker 2: if anything, accelerating further.
Speaker 3: By the way, more than four hundred and twenty percent
Speaker 3: over the past twelve months, you're worth almost one hundred
Speaker 3: billion dollars. You're now worth a lot more than Intel,
Speaker 3: which for an old guy like me, that's that's a
Speaker 3: real milestone. Where do you see the biggest growth? I
Speaker 3: know you're expanding overseas. We talked to you last time
Speaker 3: about tokenization. What's the biggest shooting star at Robinhood?
Speaker 2: I think if you look long term, the big potential
Speaker 2: that I see for Robinhood is how can we expand
Speaker 2: across two different axis. One is from being US only
Speaker 2: or US primary to being fully global available to billions
Speaker 2: of people around the world. And the other is can
Speaker 2: we go from being retail only and serving the full
Speaker 2: wallet of a retail customer and being this sort of
Speaker 2: like financial super app to a full platform that serves
Speaker 2: not just retail but businesses and institutions. And you know,
Speaker 2: we're getting into that through some of the acquisitions that
Speaker 2: we're making and through organic platform expanse.
Speaker 3: But by the way, could I live on Robinhood now?
Speaker 3: I mean, could I have Bloomberg deposit my paycheck with
Speaker 3: you and pay all my bills with you, and you know,
Speaker 3: get a loan from you and do my trading with you.
Speaker 3: Are you looking at that full suite and how fast.
Speaker 1: Can you get there?
Speaker 2: You can do the Lion's share of that. Robinhood Banking
Speaker 2: is actually rolling out later this quarter. We're still on
Speaker 2: track for that. It's now rolled out internally to our
Speaker 2: thousands of employees and it's looking really good. So that'll
Speaker 2: allow you to put in your paycheck, get checking savings accounts.
Speaker 2: You don't have to go to the ATM. We figured
Speaker 2: out how to get cash to you to where you are.
Speaker 2: For those of others that still use cash, you can
Speaker 2: do your estate planning. We have home loans partnership with
Speaker 2: Sage that lets you have a mortgage at an industry
Speaker 2: leading rate. And of course you're trading, you're investing your advisory,
Speaker 2: so we can help you with the Lion's share of that.
Speaker 2: I didn't even mention the credit card, but you saw
Speaker 2: my credit card last time. I think it's the best
Speaker 2: credit card on the market.
Speaker 1: So you were talking about Robinhood Banking launching to a
Speaker 1: broader audience soon, But what does that put you in
Speaker 1: terms of your relationship to the broader banking industry. You
Speaker 1: just saw about a day ago, JP Morgan and Coinbase
Speaker 1: inking a deal to allow wallets to be more linked
Speaker 1: to bank accounts.
Speaker 2: Are you going to be partnering with.
Speaker 1: Banks or are you running in direct competition to them?
Speaker 2: I think that as our companies become bigger and bigger
Speaker 2: and just diversify into more segments, the relationship with counter
Speaker 2: parties will be collaborative and will partner in some ways.
Speaker 2: And of course, in the broad sense, every financial company
Speaker 2: competes with every other one if your goal is to
Speaker 2: get customer assets and greater wallet share. But yeah, I
Speaker 2: think it's it's nothing. In the financial services industry, the
Speaker 2: large companies have always like collaborated and competed across different axes.
Speaker 1: So to mass point a little earlier, one year growing tremendously,
Speaker 1: you have stock as currency to do so, you're became
Speaker 1: worth more than Intel. How much firepower does that give
Speaker 1: you for a transformative acquisition? Could you do something much
Speaker 1: bigger and what are the types of places you'd.
Speaker 2: Look Yeah, uh interesting, I've never I've never had Intel
Speaker 2: brought up as a comp but I see what you
Speaker 2: mean about that being historically you know, these companies that
Speaker 2: you think of is very infrastructured.
Speaker 3: NIC's an iconic company if you grew up with it
Speaker 3: like me, you know, and then yeah, I mean, it
Speaker 3: eclipsed it.
Speaker 2: Even being in the same conversation as those brands is humbling.
Speaker 2: I think We've always been very deliberate with acquisitions, so
Speaker 2: we want to make sure it pencils and it makes
Speaker 2: sense for the company. It gives us eighteen month acceleration
Speaker 2: to the product roadmap. We get a team that's like
Speaker 2: DNA culture aligned with us because we like to move fast,
Speaker 2: and we have very very high bar for talent and
Speaker 2: if all those are met. We've been pretty active, as
Speaker 2: I'm sure you're aware, in the acquisition market. So I
Speaker 2: wouldn't say, you know, I have a particular itch, but
Speaker 2: we've got a great corp DEV team and we tend
Speaker 2: to look at every opportunity that comes up.
Speaker 3: You became a household name during the first wave of
Speaker 3: retail trading post pandemic retail trading, and now we've seen
Speaker 3: that pick up again. In fact, a lot of investors
Speaker 3: or bankers come on this show and say, it's really retailed.
Speaker 3: It's bought this thirty percent surge from the bottom of April,
Speaker 3: and institutional investors have to catch up. Can that hold?
Speaker 3: Have we seen a fundamental shift in the way people invest?
Speaker 2: I think the fundamental shift is that if you think
Speaker 2: about you know, institutional investing, all these fund managers, it's
Speaker 2: very abstracted. So I think they tend to make decisions
Speaker 2: about portfolio allocation based on macro factors. You know, tariffs,
Speaker 2: geopolitical conflict, let me use that to rebalance the portfolio,
Speaker 2: And so you end up having somewhat strange things where
Speaker 2: a company that is unaffected or perhaps benefits from that
Speaker 2: type of uncertainty could just get sold off because of
Speaker 2: broader macro. Now retail doesn't think that way. Retail says,
Speaker 2: I want to buy this stock because I believe in
Speaker 2: this particular company, and so you see them doing very
Speaker 2: very well in the scenarios where you know, broad market
Speaker 2: activity affects companies that are otherwise doing very very well
Speaker 2: and shouldn't be unaffected. But you know, institutions hands are
Speaker 2: basically forced because they have to reallocate, and I think
Speaker 2: that's a positive. It's a positive thing. We've gotten so
Speaker 2: abstracted that I think we need to get back to
Speaker 2: the basics of people buying stocks because they believe in
Speaker 2: that particular company and not because of some sectual correlation
Speaker 2: that may or may not actually exist.
Speaker 3: Well, it's great to get some time with you, Glad,
Speaker 3: especially here in New York on set with us Latin
Speaker 3: of they're the CEO of Robinhood this.
Speaker 2: Thanks for having me