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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: and sure they definitely can be, but understanding of professionals

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Speaker 1: routine shows us how they achieve their success little by little,

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Speaker 1: day after day. It's like banking with P and C Bank.

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Speaker 1: It might seem boring the safe plan and make calculated

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Speaker 1: decisions with your bank, but keeping your money boring is

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Speaker 1: what helps you live a more happily fulfilled life. P

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Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

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Speaker 1: Boring since eighteen sixty five is a service mark of

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Speaker 1: the PNC Financial Service Group, Inc. P and C Bank

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Speaker 1: National Association Member FDIC. When I did the podcast with

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Speaker 1: you all, I was telling you probably the most impactful

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Speaker 1: interview I've done in my career, how.

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Speaker 2: He rolls out as real.

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Speaker 3: He wrote, Troy talk about the tags list.

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Speaker 1: About finance, but we talk in Aguish that it is

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Speaker 1: common to the.

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Speaker 4: People that's from the dreams that we grew up with.

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Speaker 2: You all are the bright spot. Thank Jwership for Black Americans,

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Speaker 2: this is the knowledge that actually matters. I plaug both

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Speaker 2: of you for this.

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Speaker 1: Thank you isn't it a country issue? Is not an American issue,

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Speaker 1: It's a world issue.

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Speaker 2: You came to earn Lisa.

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Speaker 3: All Right, guys, welcome back special episode. We are on

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Speaker 3: site at Robin Hood's New York office. Absolutely, Norah, glad.

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Speaker 3: Thanks for the hospitality and the whole team.

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Speaker 5: We greatly appreciate us. Yeah, yeah, always.

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Speaker 1: You have become a regular audience and we're very appreciative

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Speaker 1: of always getting the invite to sit down.

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Speaker 6: Well, you guys have seen our trajectory from I think

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Speaker 6: the first time I was on your show, we were

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Speaker 6: sort of in a relatively low point in our journey.

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Speaker 6: Than each time I think it's it's better and better.

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Speaker 4: So yeah, I'm thankful to you guys.

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Speaker 1: I'm glad you noticed the theme every time you come

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Speaker 1: on is we just keep moving up.

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Speaker 2: Keep going up? Yeah, keep going up.

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Speaker 3: So flat Tenef, thank you for joining the CEO of

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Speaker 3: Robin Hood and we have a lot to talk about,

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Speaker 3: but congratulations and events for everything that you guys have

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Speaker 3: been doing over the last year has been astonishing.

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Speaker 6: There's much much more to do. I'm always looking forward.

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Speaker 5: Yeah.

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Speaker 6: We are in no way, shape or form done with

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Speaker 6: our mission, so plenty more to do.

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Speaker 1: I think when we look at twenty twenty five and

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Speaker 1: it's totality, obviously the stock has tripled, You've been added

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Speaker 1: to the S and P. What is one of the

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Speaker 1: most proudant moments this year? So that has happened.

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Speaker 5: I think that.

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Speaker 6: My proudest moment was it was right before Hood Summit,

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Speaker 6: which was our Active Trader event. Everyone was sort of

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Speaker 6: like we'd been working hard all year, right, and it's

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Speaker 6: not just the things you mentioned, but we've done so

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Speaker 6: many product events. We started with our Gold event, the

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Speaker 6: Lost City of Gold, where we launched a new digital

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Speaker 6: advisory service and Robinhood Banking, and also Cortex, which is

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Speaker 6: our AI model, so that the year started off with

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Speaker 6: a bang. Prediction markets became a big thing. We've been

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Speaker 6: spending a lot of time working on that. We have

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Speaker 6: our Active Trader event, we launched tokenization in Europe, which

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Speaker 6: in the French Riviera, where I wore a very nice

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Speaker 6: white pinstripe suit, and then we went to our Active

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Speaker 6: Trader event in a few weeks before. We were in

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Speaker 6: a meeting with the senior team and I said, you

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Speaker 6: know what, guys, we've been making such good progress in AI.

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Speaker 6: We haven't really shared it with the world. We've also

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Speaker 6: been making a ton of progress with Prediction Markets that

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Speaker 6: we've never really talked publicly in event for him about

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Speaker 6: I know everyone's working hard about Hood Summit, but why

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Speaker 6: don't we do another event too in the middle of December,

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Speaker 6: and that became Robinhood Yes No, which is happening on

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Speaker 6: December sixteenth, Prediction Markets and AI And basically I survived

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Speaker 6: that meeting and everyone was actually excited about about launching

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Speaker 6: new products right at the end of the year. So

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Speaker 6: I think the culture of the company is at a

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Speaker 6: point where we move fast, we do it safely, and

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Speaker 6: we've just been like shipping great product at a velocity

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Speaker 6: that makes me proud. So I think I think that's

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Speaker 6: the biggest thing from the year that that I'm proud

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Speaker 6: of and thankful for.

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Speaker 3: So yeah, so Choice said, the stock is up two

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Speaker 3: hundred and sixty three percent over the last fifty two weeks.

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Speaker 3: So what did what did? What did Wall Street get

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Speaker 3: wrong about rob Hunt? Cause, like you said, when we

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Speaker 3: first met, it was a it was a it was

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Speaker 3: kind of a rough patch that you guys were going through,

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Speaker 3: and a lot of people kind of counted you guys out,

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Speaker 3: especially from a Stock standpoint, but just stock has rallied

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Speaker 3: and has been, you know, a huge success for the shareholders.

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Speaker 3: So what do you think you guys did right? And

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Speaker 3: and the people that bet against you, what did they

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Speaker 3: have wrong?

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Speaker 6: The number one thing is probably product velocity, being able

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Speaker 6: to ship so many products at high quality quickly, at scale,

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Speaker 6: and when you couple that with a large, already engaged

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Speaker 6: customer base, we can distribute the product very effectively to

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Speaker 6: customers and that's led to increase in revenues. So we've

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Speaker 6: been able to increase revenues and actually the growth rate

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Speaker 6: of revenues has been quite high year over year while

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Speaker 6: simultaneously improving margins. I think that's a rare combination. There's

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Speaker 6: this financial metric called rule of forty that maybe you

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Speaker 6: guys are familiar with. Sometimes people compare companies on this metric,

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Speaker 6: and basically you add your revenue growth rate to your margins,

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Speaker 6: and if the number is greater than forty, that's sort

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Speaker 6: of like a good target. So revenue growth rate plus margins.

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Speaker 6: And the argument there is you can be growing fast

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Speaker 6: and have low margins and that's okay. That's like a

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Speaker 6: considered a good investment, or you could be growing more slowly,

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Speaker 6: but if your margins are good, then that compensates for it.

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Speaker 6: And I think our last rule of forty print was

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Speaker 6: over one hundred. So if you plot all the companies

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Speaker 6: in SEP. Five hundred across, this metric robin is just

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Speaker 6: a huge outlier. And it's because we've been able to

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Speaker 6: grow very quickly while also improving margins at the same time,

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Speaker 6: and I think that's a rare combination for public company.

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Speaker 1: When we first met, it was just before the idea

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Speaker 1: of the meme stock, which obviously your platform got a

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Speaker 1: lot of flat four and it was, Oh, the retail

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Speaker 1: traders don't know what they're doing. And then we saw

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Speaker 1: you speak and we met again, and was the idea

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Speaker 1: of like, the retail trader is the sophisticated trader. Yeah,

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Speaker 1: talk about the role and how that's transpired over the

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Speaker 1: past two or three years to now that everybody's in

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Speaker 1: on it, Like way the retail is where we can

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Speaker 1: get a lot of our customer based from because they

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Speaker 1: have the tools.

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Speaker 6: I think companies are waking up to this. You know,

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Speaker 6: we were relatively early to embrace the retail trader because

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Speaker 6: the retail trader is our customer. So of course we

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Speaker 6: have a natural incentive as a company to have our

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Speaker 6: customers be shareholders, right because not only are they are shareholders,

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Speaker 6: but they're people that use the product every day. You know,

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Speaker 6: our product is a stock market investing product at its core,

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Speaker 6: and one of the things that I'm very proud of

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Speaker 6: is the work that we've done on IPO access. I

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Speaker 6: mentioned you guys a little earlier. It is my second

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Speaker 6: trip to New York this week. First time I was

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Speaker 6: at the New York Stock Exchange on Tuesday at a

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Speaker 6: round table called make IPOs Great Again.

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Speaker 5: It's funny name.

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Speaker 6: They had the red hats too, which, by the way,

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Speaker 6: the idea that the administration and the regulators are coming

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Speaker 6: to Robinhood as a representative of the retail investor to

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Speaker 6: collect feedback for how to make capital markets and IPOs

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Speaker 6: better was something that probably I wouldn't have imagined the

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Speaker 6: first time we met in twenty twenty two. So pretty

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Speaker 6: crazy how quickly things can change. But when we went

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Speaker 6: public in twenty one, we rolled out this product called

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Speaker 6: IPO Access, and the idea was not just have IPOs

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Speaker 6: be for the chosen few, the elites, the high net worth,

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Speaker 6: the private wealth folks, and obviously the institutions. But how

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Speaker 6: do we plug robinhood investors directly into IPOs and get

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Speaker 6: them allocations at the same price on a level playing

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Speaker 6: field with the institutions. And so our IPO at the

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Speaker 6: time was I think the largest IPO retail allocation for

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Speaker 6: an IPO of its size, and we tried to get

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Speaker 6: other companies on board. We got some, but they were

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Speaker 6: very skeptical and reluctant. You know, some people actually, to

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Speaker 6: be fair, really bought into it, but most companies we

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Speaker 6: had to ask for favors, and you know, they would

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Speaker 6: throw us a few scraps, like we'll give you half

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Speaker 6: a percent of the IPO allocation. So we really asked

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Speaker 6: for favors and people didn't really get it.

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Speaker 5: They're like, what's the point.

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Speaker 6: I'm just trying to take my company public, go through

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Speaker 6: the process, get it over with so I can get

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Speaker 6: back to running my business. They didn't really see the point.

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Speaker 6: And fast forward to twenty twenty five this year, when

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Speaker 6: the IPOs have come back, every company of consequence has

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Speaker 6: basically come to us and asked, let's talk about our

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Speaker 6: retail strategy. How do we get retail more engaged. And

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Speaker 6: you started to see the CEOs of those companies when

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Speaker 6: they're doing their press about the IPO, talking about how

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Speaker 6: retail's big concent tituency and saying, you know, in the

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Speaker 6: case of Bullish CEO, we give retail twenty percent allocation.

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Speaker 6: It's one of the largest retail allocations ever. Gemini CEO,

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Speaker 6: the Winklevost Winds gave a huge retail allocation and you know,

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Speaker 6: now it's it's completely shifted where retail is definitely being

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Speaker 6: a first class citizen. So what we're trying to do

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Speaker 6: is push that forward, go deeper into IPOs and continue

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Speaker 6: the leadership we have there. Post IPO. We want to

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Speaker 6: make the brand of being a public company a little

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Speaker 6: bit better. I don't know if you guys have I'm

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Speaker 6: sure you talk to a lot of entrepreneurs, some of

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Speaker 6: whom are public. Generally, the perception and the way they

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Speaker 6: talk about being public is negative. We have to be public,

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Speaker 6: but I hate earnings calls.

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Speaker 5: I hate this.

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Speaker 6: I hate that it's a chore. And what I'm trying

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Speaker 6: to do is shift it into being a positive thing.

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Speaker 6: So rather than thinking of your earnings calls as a chore,

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Speaker 6: how can they become fun? Can you as the executive

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Speaker 6: have fun during earnings and also can the audience actually

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Speaker 6: enjoy watching it. So we've been investing a lot in

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Speaker 6: actually making our earnings calls not just informative, but entertaining.

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Speaker 6: So for the last one, we did it at the

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Speaker 6: Chase Center, home of the World to State Warriors, and

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Speaker 6: we not only had the cell side analysts, who's the

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Speaker 6: typical earnings audience, but we had buyside investors. We also

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Speaker 6: had the media, so the media was at our earnings

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Speaker 6: calls and everyone could ask questions on a level playing field.

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Speaker 5: We had retail investors via.

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Speaker 6: Zoom asking questions, and then of course the whole thing

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Speaker 6: was televised, so it was on live stream on social media.

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Speaker 6: And you know, go back a year ago, our earnings

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Speaker 6: calls were on a polycom audio only. We had maybe

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Speaker 6: like hundreds of people listening, and now it's gone to

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Speaker 6: tens of thousands, so orders of magnitude increase in the

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Speaker 6: audience for earnings. And now we're starting to actually export

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Speaker 6: this as a product to other public companies. So Open Door,

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Speaker 6: for example, they saw what we were doing, they said,

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Speaker 6: we want to engage retail. We want retail to be

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Speaker 6: our number one constituency, so we work with them to

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Speaker 6: live stream their earnings to our audience in the Robinhood

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Speaker 6: app and we've heard from many people that they'd like

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Speaker 6: to start doing this. So I think you'll see earnings

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Speaker 6: calls becoming fun and I think the brand of being

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Speaker 6: a public company start to shift into a more positive thing.

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Speaker 6: And also on the other side of the spectrum before

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Speaker 6: a company is going public, when they're still private, we're

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Speaker 6: hard at work trying to get retail exposure on the

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Speaker 6: private side and making that a little bit easier. We

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Speaker 6: have a great initiative called Robinhood Ventures, which is going

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Speaker 6: to be in the US, and we're launching a closed

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Speaker 6: then fund that's on file with the SEC right now,

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Speaker 6: so we're actually in the quiet period. I can't talk

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Speaker 6: much about it, but the ideas make it so that

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Speaker 6: retail investors can invest in the best private companies before

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Speaker 6: they go public. So we're kind of tackling it across

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Speaker 6: every part of the spectrum.

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Speaker 3: Yeah, talk about just from a retail standpoint, how that's changed,

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Speaker 3: and you guys played a major part in that. Retail

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Speaker 3: investors used to be called dumb money. Yeah, not really

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Speaker 3: taken seriously because they were not educated. But now they

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Speaker 3: have a higher level of education platforms like ourselves and

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Speaker 3: your platform, and they're more respected. But there's also more

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Speaker 3: risks because they're taking more risks now too, right Like

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Speaker 3: they're they're doing things that a lot of people didn't

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Speaker 3: even think about doing before, as far as options and

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Speaker 3: futures and you know, leveraging different things in that nature.

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Speaker 3: So what is your thoughts on the state of a

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Speaker 3: retail investor in twenty twenty five and what are some

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Speaker 3: opportunities and what is some dangers that they need to

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Speaker 3: be aware of.

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Speaker 6: I think that retail investors. I think retail investors being

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Speaker 6: a bigger chunk of the markets is a very good

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Speaker 6: thing for companies because you notice a lot of times

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Speaker 6: there's some macro event like we saw it this year

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Speaker 6: with the tariffs. We saw a couple of weeks ago

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Speaker 6: with the sort of like FED decision in December, is

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Speaker 6: the Fed going to cut maybe they'll refrain from cutting,

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Speaker 6: And that affects the markets. And it's because institutional investors

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Speaker 6: tend to like make broad portfolio moves without really looking

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Speaker 6: deeply at each individual company. It's sort of like I'm

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Speaker 6: risk off. I'm going to reallocate for my stocks to

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Speaker 6: fixed income or move to cash. Retail investors tend to

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Speaker 6: invest directly in companies, and they make their buy and

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Speaker 6: sell decisions based on the company doing well. So, for example,

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Speaker 6: when the tariffs hit, you know, so you saw a

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Speaker 6: lot of growth companies that probably weren't directly affected by

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Speaker 6: tariffs hit rather hard by that, right, and retail investors

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Speaker 6: looking at this and saying, why this company just go

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Speaker 6: down forty percent doesn't make any sense. Tariffs have nothing

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Speaker 6: to do with it. It's just because hedge funds are

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Speaker 6: selling everything, right, So then they bought it and they

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Speaker 6: became net buyers, and then they became rewarded for it.

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Speaker 6: So I think the more retail investors come to the market,

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Speaker 6: the less this like indexing thing is going to lead

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Speaker 6: to price dislocations. I think the more signal you'll get

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Speaker 6: of people buying companies because they actually want to invest

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Speaker 6: in that specific company. And I think also retail investors

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Speaker 6: are smart, and what's really attractive about companies is they're

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Speaker 6: not only smart and doing like careful analysis and posting

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Speaker 6: it on social media, but when they become investors, they

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Speaker 6: become kind of defenders and fans of the company. I

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Speaker 6: think one problem you're seeing with the AI companies right

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Speaker 6: now is AI technology is very popular. People are adopting it,

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Speaker 6: but the AI companies themselves are very unpopular. They don't

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Speaker 6: have that many fans. If you see criticism about you know,

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Speaker 6: say Open Ai or Anthropic, the people rushing to defend

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Speaker 6: them are either venture capitalists online or you know AI

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Speaker 6: researchers that work at these companies. But you compare that

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Speaker 6: to crypto. You know, if the crypto industry is under

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Speaker 6: threat from you know, regulatory overreach, or even if just

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Speaker 6: someone says something negative about bitcoin, you just have an

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Speaker 6: army of retail people that just take the knives out.

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Speaker 6: And you know, people are nervous to say anything negative

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Speaker 6: about bitcoin now. And I think it's because the one

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Speaker 6: thing crypto got very very right from a very early point,

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Speaker 6: I mean from basically the genesis of it is making

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Speaker 6: it so that normal people can have crypto. And then

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Speaker 6: you see everyone's invested in crypto. You know, you've got

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Speaker 6: tens of millions of people in this country, so they're

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Speaker 6: going to defend it because they own it. And I

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Speaker 6: think AI doesn't have that property. The big private companies

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Speaker 6: are held by wealthy insiders, so they don't have as

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Speaker 6: many defenders, and I think that could become a big

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Speaker 6: problem for them, because you know, if it starts taking

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Speaker 6: more jobs or at least disrupting the labor force at

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Speaker 6: an accelerated rate, I think people are going to get

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Speaker 6: angrier and angrier. I think what's going to happen is

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Speaker 6: if regulations come, they're not going to have people fighting.

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Speaker 6: The everyday person might not be on the side of

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Speaker 6: the big AI companies. I think that's a threat to

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Speaker 6: the technology.

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Speaker 1: Yeah, there's some talk from a lot of leaders in

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Speaker 1: AI about the regulatory environment and how if it gets

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Speaker 1: too stringent, it will be full behind. Obviously, I'm sure

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Speaker 1: you're part of some of these conversations from a broker standpoint,

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Speaker 1: but also from the cryptal standpoint. How do you see

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Speaker 1: it in terms of this race in AI.

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Speaker 6: Yeah, it's interesting to me to compare how much regulation

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Speaker 6: is in financial services, you know, quite a bit highly regulated,

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Speaker 6: compared to what we've seen with AI, which is actually

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Speaker 6: very little, like it's mostly been allowed to go in

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Speaker 6: and disrupt and and you know, it's hard to say

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Speaker 6: that that's been wrong because thus far, I think that

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Speaker 6: the effects have been largely positive from my standpoint. I mean,

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Speaker 6: you're seeing increases in productivity largely. It hasn't displaced too

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Speaker 6: much labor participation. But you know, the models are getting

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Speaker 6: better and better, and I think we've gone from just

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Speaker 6: summarizing information that's already out there to creating new knowledge.

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Speaker 6: And you know, the knowledge is maybe small bits and

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Speaker 6: chunks here and there, but you can imagine as they

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Speaker 6: get better, you know, the knowledge being created and the

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Speaker 6: discoveries being made, and maybe new inventions will come that

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Speaker 6: are more and more complicated. So then it starts to

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Speaker 6: get scary and you start thinking about, you know, how

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Speaker 6: big is the disruption? How do we mitigate the negative effects?

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Speaker 6: And I think the best way is to make sure

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Speaker 6: people are invested in it. Yeah, so that you know,

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Speaker 6: at least you own the thing that's disrupting. You're you're

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Speaker 6: always you're always going to be in better shape if

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Speaker 6: you have some a stake in the agent of disruption.

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Speaker 2: Yeah.

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Speaker 1: I just a follow up because I asked that because

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Speaker 1: I watched your clip where you talked about your belief

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Speaker 1: in artificial intelligence on the record, saying that it's going

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Speaker 1: to create a new world order, diminishing people's chances to

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Speaker 1: earn income from labor, and fueling participation in markets and

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Speaker 1: trading on brokerage apps. And when you said it, I

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Speaker 1: was like, this is what we've been saying all along.

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Speaker 1: You have to invest. It's the only way probably going

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Speaker 1: to do it. Speaking to that audience now of who's

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Speaker 1: going to be interrupted and disrupted, knowing that your brokerage

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Speaker 1: has a youth movement, it just feels like those things aligned.

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Speaker 1: How are you viewing it in the terms the future,

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Speaker 1: in terms of the disruption and investing.

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Speaker 6: Yeah, I mean I think that when I talk to people,

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Speaker 6: it sort of like breaks down by age a little bit.

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Speaker 6: So for older folks such as myself, I don't think

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Speaker 6: they're worried that much. They're like, oh, well, you know,

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Speaker 6: we're going to retire soon, and not exactly for me,

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Speaker 6: I'm not going to retire soon.

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Speaker 5: But you know, if you're in a certain.

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Speaker 6: Age, you're already mid career or a late career, you

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Speaker 6: probably don't care as much. Young people in their twenties

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Speaker 6: and thirties going to two buckets. Some are like Super

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Speaker 6: Bowl and they're like, I'm going to use AI to

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Speaker 6: build a company. Very entrepreneurial people who are very excited

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Speaker 6: about this, but yeah, there's you know, folks in their

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Speaker 6: twenties that are maybe a little bit less entrepreneurial that

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Speaker 6: we're sort of like planning on a stable career path,

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Speaker 6: and they're very nervous. They don't know if that job

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Speaker 6: that they were maybe going to college to get is

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Speaker 6: going to be around in ten years, and there's a

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Speaker 6: lot of uncertainty. I think there will be job disruption.

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Speaker 6: I think certain categories are easier to product predict than others,

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Speaker 6: Like it probably wouldn't want to go into telemarketing right

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Speaker 6: now as a as a profession, for example. But I

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Speaker 6: also think there's going to be new jobs that are

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Speaker 6: that are created and new job categories. And I mean,

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Speaker 6: for example, your guys' job, like a influencer and content creator.

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Speaker 6: It's very hard for people to be influencers and content

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Speaker 6: creators even ten years ago. Right this is like a

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Speaker 6: new thing. So I think you'll get a bunch of

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Speaker 6: new things like that. And I think the field that

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Speaker 6: you guys are in is are going to continue to grow.

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Speaker 6: There's going to be more people that are that are

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Speaker 6: going into that path, so not all is lost, and

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Speaker 6: I think the jobs of the future will tend to

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Speaker 6: look like leisure to us.

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Speaker 5: Yeah.

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Speaker 6: I mean, you imagine fifty years ago, like our grandparents

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Speaker 6: in the workforce working at a big company, or maybe

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Speaker 6: one hundred years ago if they're working in a factory

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Speaker 6: or something like that. Looking at what we're doing today.

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Speaker 6: You guys are recording shows. I'm at a computer typing.

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Speaker 6: You know, probably wouldn't have looked like real work. They'd

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Speaker 6: be like, oh, these guys are just horsing around. You know,

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Speaker 6: why aren't they picking up tools and building stuff?

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Speaker 5: You know.

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Speaker 6: But you know, we take our jobs very, very seriously,

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Speaker 6: and I think we'll probably have that same view of

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Speaker 6: people two generations from now.

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Speaker 3: So you're not you're not worried about like doomsday scenario

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Speaker 3: when it comes to AI.

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Speaker 6: I think that we'll be able to manage it. Yeah,

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Speaker 6: I'm very I'm very optimistic. I mean, I don't think that.

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Speaker 6: I think a lot of people feared about a fast takeoff.

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Speaker 6: And you know when you guys saw GPT four came

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Speaker 6: out and it was like a big change qualitatively over

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Speaker 6: GP three T three point five, the original Chad GPT.

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Speaker 6: Now we're on you know, GPT five, Gemini three. These

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Speaker 6: models are good, but it's not like each one getting

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Speaker 6: ten times better than the last. And there was this

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Speaker 6: report twenty It was called like AI twenty twenty seven

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Speaker 6: by an AI researcher. Maybe you guys have read this,

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Speaker 6: and you know recently they updated and they're like, Okay,

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Speaker 6: we thought everything would happen by twenty twenty seven. It's

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Speaker 6: going a little bit slower than we imagine. We're revising

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Speaker 6: it to twenty thirty. So AI researchers call that a

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Speaker 6: slow takeoff scenario, and a slow takeoff is sort of

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Speaker 6: good because that means we'll have more time than we

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Speaker 6: thought to adapt and actually, you know, make changes. So

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Speaker 6: I think we'll get there. I think initiatives like getting

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Speaker 6: more people in the markets, making sure the young people

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Speaker 6: and the babies have brokerage accounts from birth through the

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Speaker 6: Invest America initiative will get us there. I think there'll

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Speaker 6: be more entrepreneurship, and probably that entrepreneurship will look like

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Speaker 6: leisure to us today, which also is a good thing.

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Speaker 3: Where do you see crypto going, because obviously that's the

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Speaker 3: major staple in what you guys have built with Robinhood

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Speaker 3: in twenty twenty five, let's say twenty thirty five, right, Yeah,

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Speaker 3: where do you see crypto going and bigcoin specifically.

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Speaker 6: Yeah, I think the biggest needle mover for crypto is

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Speaker 6: that it's going to help take the great things we

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Speaker 6: built in the US and make them increasingly global and

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Speaker 6: available to investors all around the world, some of which

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Speaker 6: haven't had access to these tools, because I think we

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Speaker 6: kind of take it for granted here that we have

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Speaker 6: the US dollar, we have access to US stocks, we

436
00:24:41,720 --> 00:24:46,080
Speaker 6: have really high quality assets. When Robinhood gets our private initiatives,

437
00:24:46,080 --> 00:24:49,040
Speaker 6: we'll be able to distribute access to private companies, so

438
00:24:49,080 --> 00:24:52,720
Speaker 6: we have really good investments and ways to allocate your capital.

439
00:24:53,240 --> 00:24:57,240
Speaker 6: If you're in Venezuela, you don't have access to those things.

440
00:24:57,960 --> 00:25:00,400
Speaker 6: And that's actually why stable coins have been soapower popular,

441
00:25:00,680 --> 00:25:03,359
Speaker 6: because you know, a lot of these people are in

442
00:25:03,440 --> 00:25:07,719
Speaker 6: countries that have unstable governments, unstable central banks. If they

443
00:25:07,720 --> 00:25:10,240
Speaker 6: do have central banks at all, they don't have functional

444
00:25:10,240 --> 00:25:15,680
Speaker 6: banking systems. Currencies are devaluing, and they're just adding zeros

445
00:25:15,720 --> 00:25:20,320
Speaker 6: and zeros to them. The bills are worthless. So stable

446
00:25:20,359 --> 00:25:25,280
Speaker 6: coins really became popular as a way to store your

447
00:25:25,280 --> 00:25:29,360
Speaker 6: wealth in US dollars, because you know, the crypto companies

448
00:25:29,400 --> 00:25:34,240
Speaker 6: actually went in and built local rails connecting to all

449
00:25:34,280 --> 00:25:37,320
Speaker 6: of these markets, so they've been plugged into the crypto system.

450
00:25:37,960 --> 00:25:43,000
Speaker 6: And I think crypto will evolve with tokenization to make

451
00:25:43,000 --> 00:25:47,800
Speaker 6: it easy to distribute US stocks and other investments overseas

452
00:25:48,160 --> 00:25:51,120
Speaker 6: as easily as stable coins have done it to dollars.

453
00:25:51,359 --> 00:25:53,840
Speaker 6: So I think that's the future. Crypto will sort of

454
00:25:53,880 --> 00:25:56,320
Speaker 6: like the technology will help stitch together all of the

455
00:25:56,359 --> 00:25:58,920
Speaker 6: markets that make it so that everyone is on a

456
00:25:59,000 --> 00:26:03,400
Speaker 6: level playing field, uh outside the US as we are

457
00:26:03,440 --> 00:26:05,920
Speaker 6: in here. That's at least the future that we're we're

458
00:26:05,960 --> 00:26:06,720
Speaker 6: working to build.

459
00:26:07,359 --> 00:26:09,800
Speaker 3: So you believe in o ecosystem, not just bitcoin. Not

460
00:26:09,800 --> 00:26:10,639
Speaker 3: a bitcoin maxie.

461
00:26:10,680 --> 00:26:12,320
Speaker 5: I'm not a bitcoin maxie.

462
00:26:12,520 --> 00:26:14,679
Speaker 6: Yeah, I mean I'm a bitcoin fan, and I think

463
00:26:14,800 --> 00:26:23,800
Speaker 6: bitcoin uh has an inherent advantage. Price prediction, Oh, price

464
00:26:23,840 --> 00:26:27,560
Speaker 6: predictions are tough. I would tell you, I'm pretty I'm

465
00:26:27,560 --> 00:26:32,200
Speaker 6: pretty bull And if you told me at the beginning

466
00:26:32,240 --> 00:26:34,080
Speaker 6: of the year that there would be like a National

467
00:26:34,119 --> 00:26:37,280
Speaker 6: Bitcoin Strategic Reserve and all of these dats and we

468
00:26:37,320 --> 00:26:40,600
Speaker 6: would still be sitting here basically flat for the year,

469
00:26:40,800 --> 00:26:43,480
Speaker 6: maybe a little bit up, I'd be, I'd be surprised.

470
00:26:44,920 --> 00:26:48,040
Speaker 6: It's got a lot going for it. It's a singular asset, right,

471
00:26:48,400 --> 00:26:50,120
Speaker 6: it'll it'll always be the first.

472
00:26:50,359 --> 00:26:50,840
Speaker 5: So I think.

473
00:26:50,960 --> 00:26:53,240
Speaker 6: I think it's got a bit of a religion around

474
00:26:53,280 --> 00:26:55,919
Speaker 6: it with the bitcoin maxis and and that's hard to

475
00:26:55,960 --> 00:26:58,159
Speaker 6: fight relative to the other coins.

476
00:26:58,440 --> 00:27:02,240
Speaker 1: Yeah, I think obviously, if you look at the correlation

477
00:27:02,320 --> 00:27:04,160
Speaker 1: between the rise of bitcoin getting up to one hundred

478
00:27:04,160 --> 00:27:07,560
Speaker 1: and twenty six thousand, you watch your stock also get

479
00:27:07,600 --> 00:27:10,200
Speaker 1: towards all time high around the same time. People feel

480
00:27:10,240 --> 00:27:12,560
Speaker 1: like there's a correlation there, but there's also a piece

481
00:27:12,760 --> 00:27:14,960
Speaker 1: that has helped the stock, and that's the predictive markets.

482
00:27:15,320 --> 00:27:17,639
Speaker 1: So not only could you invest in bitcoin, but you

483
00:27:17,680 --> 00:27:20,359
Speaker 1: could say, hey, I see it getting to one hundred

484
00:27:20,400 --> 00:27:24,480
Speaker 1: thousand by December thirty. First, talk about the role that

485
00:27:24,520 --> 00:27:26,639
Speaker 1: predictive markets is played, because we talked about it like

486
00:27:26,680 --> 00:27:28,480
Speaker 1: you were thinking about it. We were talking about probably

487
00:27:28,480 --> 00:27:30,400
Speaker 1: market the last time we met in Miami, and now

488
00:27:30,440 --> 00:27:33,919
Speaker 1: predictive markets are a thing, a real thing that I

489
00:27:33,960 --> 00:27:36,920
Speaker 1: feel like you guys have adopted right away. Some of

490
00:27:37,000 --> 00:27:39,400
Speaker 1: the other people in the space haven't, and they're looking

491
00:27:39,480 --> 00:27:41,280
Speaker 1: at you guys like this is a leader.

492
00:27:41,280 --> 00:27:43,119
Speaker 4: Do we need to add this. This is going to

493
00:27:43,119 --> 00:27:43,720
Speaker 4: be disruptive.

494
00:27:44,160 --> 00:27:47,560
Speaker 6: Yeah, absolutely, And it's kind of a fun position for

495
00:27:48,240 --> 00:27:50,479
Speaker 6: me to be in because typically when you look at

496
00:27:50,520 --> 00:27:52,760
Speaker 6: crypto and all the other products we've added, I mean,

497
00:27:52,800 --> 00:27:57,200
Speaker 6: stock's probably the best example. We were like years after

498
00:27:57,240 --> 00:28:02,200
Speaker 6: the leaders, right, I mean stocks went electronic in the eighties.

499
00:28:02,520 --> 00:28:06,240
Speaker 6: Basically e trade got started. The idea was to trade

500
00:28:06,280 --> 00:28:11,640
Speaker 6: stocks on the Apple macintosh. Apple Macintosh had come out,

501
00:28:11,680 --> 00:28:15,159
Speaker 6: and these two guys got together in Palo Alto, California,

502
00:28:15,200 --> 00:28:17,080
Speaker 6: and we're like, what if we use the Apple macintosh

503
00:28:17,080 --> 00:28:19,719
Speaker 6: to trade stocks? And I think that was in nineteen

504
00:28:19,760 --> 00:28:23,120
Speaker 6: eighty two, which is pretty crazy. So we were multiple

505
00:28:23,160 --> 00:28:27,760
Speaker 6: decades late to the game for electronic trading in stocks.

506
00:28:28,040 --> 00:28:30,920
Speaker 6: Crypto started in two thousand and nine. We added crypto

507
00:28:31,040 --> 00:28:35,320
Speaker 6: to the platform in twenty seventeen. Actually, yeah, twenty eighteen

508
00:28:35,560 --> 00:28:38,760
Speaker 6: was when you could start trading it. So typically we've

509
00:28:38,760 --> 00:28:43,280
Speaker 6: had an approach where we come in after there's like

510
00:28:43,960 --> 00:28:46,680
Speaker 6: clarity that it's a real thing that people want, and

511
00:28:46,720 --> 00:28:50,680
Speaker 6: then we just bring our scale, lower costs, and you know,

512
00:28:51,040 --> 00:28:53,840
Speaker 6: better ux to the product. So Prediction Markets is a

513
00:28:53,880 --> 00:28:55,440
Speaker 6: new one for us because we were kind of out

514
00:28:55,440 --> 00:28:57,520
Speaker 6: in front and then it's sort of like how do

515
00:28:57,560 --> 00:29:00,920
Speaker 6: we maintain our lead and market position, and you know,

516
00:29:00,920 --> 00:29:03,400
Speaker 6: when we have a bunch of people coming after us.

517
00:29:03,920 --> 00:29:06,480
Speaker 6: It has surprised me that, you know, you have the

518
00:29:06,520 --> 00:29:11,200
Speaker 6: exchanges like like Polly and Calshi, who have obviously been

519
00:29:11,520 --> 00:29:14,800
Speaker 6: there from the beginning, but like no other broker has

520
00:29:15,160 --> 00:29:20,480
Speaker 6: has gotten into it yet, no other broker of significant consequence.

521
00:29:20,480 --> 00:29:22,520
Speaker 6: And I think they're coming like they're seeing what we're

522
00:29:22,520 --> 00:29:26,400
Speaker 6: doing and they see that it's resonating with traders and

523
00:29:26,800 --> 00:29:31,320
Speaker 6: and just with mass market retail. But yeah, I think

524
00:29:32,240 --> 00:29:35,840
Speaker 6: we're also moving and we're adding new innovations. I think

525
00:29:35,880 --> 00:29:38,280
Speaker 6: the event that we're gonna we're gonna unveil on the

526
00:29:38,280 --> 00:29:40,640
Speaker 6: sixteenth is is going to show some new things to

527
00:29:40,640 --> 00:29:44,640
Speaker 6: people that they haven't seen before. And it's the fastest

528
00:29:44,640 --> 00:29:47,320
Speaker 6: growing business that Robin Hood's had. You know, in the

529
00:29:47,360 --> 00:29:52,040
Speaker 6: past year, we've gone from one single contract, which is

530
00:29:52,080 --> 00:29:58,080
Speaker 6: the presidential election, to over fifteen hundred. We've gone from

531
00:29:58,400 --> 00:30:03,720
Speaker 6: it's basically the volume is doubled. Quarter over quarter. Q

532
00:30:03,880 --> 00:30:08,640
Speaker 6: three had I want to say, two point two million contracts,

533
00:30:09,400 --> 00:30:12,360
Speaker 6: but then October had two point five million, so more

534
00:30:12,360 --> 00:30:15,440
Speaker 6: than Q three put together and then you had November.

535
00:30:15,520 --> 00:30:20,600
Speaker 6: We announced the November numbers, three billion contracts traded in November,

536
00:30:20,720 --> 00:30:25,080
Speaker 6: which is yeah, it's a thirty million revenue in a month,

537
00:30:25,360 --> 00:30:28,560
Speaker 6: so three hundred and sixty million run rate if you

538
00:30:28,640 --> 00:30:33,640
Speaker 6: take the November numbers, which is a big ramp, and

539
00:30:34,720 --> 00:30:39,200
Speaker 6: I think, you know, it's just been really resonating with

540
00:30:39,640 --> 00:30:40,640
Speaker 6: the traders.

541
00:30:40,320 --> 00:30:41,760
Speaker 2: And sports betty.

542
00:30:42,480 --> 00:30:45,280
Speaker 6: Sport's a big part of it, but the big part

543
00:30:45,320 --> 00:30:49,800
Speaker 6: of what we're doing is also diversifying the contracts. So

544
00:30:49,800 --> 00:30:52,440
Speaker 6: it used to be just elections and elections I think

545
00:30:53,720 --> 00:30:56,600
Speaker 6: to me is probably the most interesting. Then we added

546
00:30:56,600 --> 00:31:00,280
Speaker 6: sports and we've added a ton of leagues. There what's

547
00:31:00,280 --> 00:31:05,720
Speaker 6: betting or like, what is it exactly? I liked most

548
00:31:05,720 --> 00:31:07,440
Speaker 6: people I took to call it wagering.

549
00:31:08,280 --> 00:31:10,920
Speaker 2: Wagering, Okay, I like the language there.

550
00:31:12,840 --> 00:31:17,160
Speaker 6: I think it's different in all seriousness to sports betting,

551
00:31:17,160 --> 00:31:20,440
Speaker 6: and a lot of people ask about, you know, how

552
00:31:20,560 --> 00:31:24,320
Speaker 6: is it different from a regulatory standpoint, from a product standpoint.

553
00:31:24,360 --> 00:31:27,400
Speaker 6: I think it's significantly different. And I haven't really done

554
00:31:27,480 --> 00:31:31,400
Speaker 6: much sports betting, but what people love about it is

555
00:31:31,600 --> 00:31:36,400
Speaker 6: you can actually trade these contracts during the game, so

556
00:31:37,000 --> 00:31:40,960
Speaker 6: you know, the because it's a it's a two sided market.

557
00:31:42,080 --> 00:31:45,040
Speaker 6: The exchanges run the contracts while the games are happening,

558
00:31:45,320 --> 00:31:48,040
Speaker 6: and that's when the information is coming in. I mean,

559
00:31:48,120 --> 00:31:54,320
Speaker 6: for example, you can see how each play changes, changes

560
00:31:54,360 --> 00:31:56,720
Speaker 6: the odds and the outcomes, and you can go in

561
00:31:56,800 --> 00:31:59,360
Speaker 6: and out of the positions, and a lot of the

562
00:31:59,360 --> 00:32:01,920
Speaker 6: market part pints that are coming in both from the

563
00:32:01,960 --> 00:32:05,160
Speaker 6: market maker side and sort of like on the trading side,

564
00:32:05,320 --> 00:32:08,880
Speaker 6: are the same market participants that have been trading futures

565
00:32:08,880 --> 00:32:13,120
Speaker 6: and equities. So I think it's disruptive to sports betting,

566
00:32:13,160 --> 00:32:17,600
Speaker 6: but I see it as a fundamentally different animal and

567
00:32:17,920 --> 00:32:20,240
Speaker 6: a better product, which is why I think all the

568
00:32:20,280 --> 00:32:26,120
Speaker 6: traditional sports betting sites are so nervous about it, and

569
00:32:26,160 --> 00:32:29,560
Speaker 6: they're just sort of like, uh yeah, they see the

570
00:32:29,600 --> 00:32:32,120
Speaker 6: writing on the wall, and they're they're working as hard

571
00:32:32,160 --> 00:32:35,080
Speaker 6: as possible to figure out their prediction market strategy, and

572
00:32:35,120 --> 00:32:38,560
Speaker 6: some of them are outright pivoting to prediction markets completely.

573
00:32:39,160 --> 00:32:40,960
Speaker 1: As soon as you said the November's numbers went up,

574
00:32:40,960 --> 00:32:44,200
Speaker 1: I automatically thought NFL and its height constable, and it's height,

575
00:32:44,200 --> 00:32:45,680
Speaker 1: but it's not just sports and NBA.

576
00:32:45,880 --> 00:32:48,520
Speaker 4: NBA is and it's kicking off. World Series is just

577
00:32:48,520 --> 00:32:49,280
Speaker 4: about the end.

578
00:32:49,200 --> 00:32:50,240
Speaker 5: Well, and we have you.

579
00:32:50,560 --> 00:32:54,360
Speaker 6: I think we mentioned this earlier AI model contracts, which

580
00:32:54,600 --> 00:32:56,000
Speaker 6: you know is a space I feel like I have

581
00:32:56,000 --> 00:33:00,000
Speaker 6: some understanding of. And you have traders that are specialized

582
00:33:00,240 --> 00:33:06,600
Speaker 6: in very specific areas. And you know, like four months

583
00:33:06,640 --> 00:33:10,440
Speaker 6: ago it was I think thirty five percent chance that

584
00:33:10,520 --> 00:33:13,880
Speaker 6: Gemini would have the best model by the end of

585
00:33:13,880 --> 00:33:17,040
Speaker 6: the year. Chad Gpt started the year ahead.

586
00:33:16,760 --> 00:33:19,720
Speaker 5: Right, and you know, if you really.

587
00:33:21,400 --> 00:33:23,880
Speaker 6: For folks that really kind of understood what was happening

588
00:33:24,200 --> 00:33:27,560
Speaker 6: in the AI world, it seemed like conventional wisdom was wrong.

589
00:33:27,640 --> 00:33:27,880
Speaker 5: Right.

590
00:33:27,960 --> 00:33:31,760
Speaker 6: You have Google, who's on a steep trajectory, and they

591
00:33:31,760 --> 00:33:35,719
Speaker 6: have all the data, all the compute, they're highly motivated.

592
00:33:35,920 --> 00:33:38,120
Speaker 6: I think now we look at the Gemini release and

593
00:33:38,160 --> 00:33:40,800
Speaker 6: it's like, well, it's so obvious they had all these tools.

594
00:33:40,800 --> 00:33:44,000
Speaker 6: But back then, I think conventional wisdom was wrong. So

595
00:33:44,160 --> 00:33:47,240
Speaker 6: I think for a trader, it's going to open up

596
00:33:47,440 --> 00:33:50,760
Speaker 6: more possibilities, and you know, you can specialize in things

597
00:33:50,840 --> 00:33:54,640
Speaker 6: because there's probably at least one topic that each person

598
00:33:54,760 --> 00:33:58,240
Speaker 6: understands better than the average conventional wisdom. So I think

599
00:33:58,240 --> 00:34:00,920
Speaker 6: it'll pull in more traders. But I think the most

600
00:34:00,920 --> 00:34:03,080
Speaker 6: interesting thing for me is that it creates a new

601
00:34:03,120 --> 00:34:07,480
Speaker 6: source of information. It's almost like the new media or

602
00:34:07,520 --> 00:34:11,359
Speaker 6: new news, or instead of watching talking heads pontificating about

603
00:34:11,360 --> 00:34:12,880
Speaker 6: what's going to happen, you can just look at the

604
00:34:12,920 --> 00:34:16,360
Speaker 6: market and then you'll learn a little bit about what's

605
00:34:16,600 --> 00:34:20,440
Speaker 6: likely or what's even what's even true in this world?

606
00:34:20,440 --> 00:34:22,520
Speaker 3: Do you have any reservations about this, because it's like

607
00:34:23,440 --> 00:34:27,359
Speaker 3: young people now are they're betting on sports more than

608
00:34:27,400 --> 00:34:29,800
Speaker 3: they open in Brogridge accounts. So we know that gambling

609
00:34:29,800 --> 00:34:33,480
Speaker 3: has been long history in America, but most of the

610
00:34:33,520 --> 00:34:36,280
Speaker 3: time people that gamble lose money, right, So that's boys

611
00:34:36,320 --> 00:34:38,399
Speaker 3: been a thing of like, well, what's the difference between

612
00:34:38,440 --> 00:34:40,480
Speaker 3: gambling and investing for a long time you can say, well,

613
00:34:40,520 --> 00:34:43,000
Speaker 3: investing is a game of knowledge and gambling is a

614
00:34:43,040 --> 00:34:45,040
Speaker 3: game of chance. Right, Like you invest in the s

615
00:34:45,080 --> 00:34:46,800
Speaker 3: and P five hundred, you hold it, you're going to

616
00:34:46,840 --> 00:34:49,680
Speaker 3: make money. Vegas is a fifty to fifty chance. But

617
00:34:49,800 --> 00:34:54,879
Speaker 3: now essentially the worlds are colliding and investing is kind

618
00:34:54,880 --> 00:34:57,440
Speaker 3: of turning into gambling like prediction markets. Right, it's kind

619
00:34:57,480 --> 00:34:59,360
Speaker 3: of like a form. It's a form of gambling and

620
00:34:59,400 --> 00:35:00,680
Speaker 3: a more sophistic decated way.

621
00:35:00,920 --> 00:35:01,720
Speaker 2: Right.

622
00:35:01,960 --> 00:35:05,680
Speaker 3: So even with the political thing. I mean, we see

623
00:35:05,680 --> 00:35:07,880
Speaker 3: what happens in sports betting. People bet a lot of

624
00:35:07,880 --> 00:35:11,040
Speaker 3: money on sports. They're going to do things to determine

625
00:35:11,040 --> 00:35:13,120
Speaker 3: that their team is going to win, which leads to corruption,

626
00:35:13,160 --> 00:35:16,160
Speaker 3: which we see FBI have an investigation on the NBA. Now, yeah,

627
00:35:16,719 --> 00:35:18,480
Speaker 3: the same thing could happen in politics. If I bet

628
00:35:18,480 --> 00:35:20,359
Speaker 3: a million dollars that the Senator is going to win,

629
00:35:20,480 --> 00:35:23,040
Speaker 3: like you know, now you get into a very gray

630
00:35:23,160 --> 00:35:28,719
Speaker 3: area of very you know, kind of a dark, dark

631
00:35:28,760 --> 00:35:32,080
Speaker 3: pathway that could be followed. So I say that to say,

632
00:35:32,560 --> 00:35:35,400
Speaker 3: do you think that this is actually a form of

633
00:35:35,440 --> 00:35:40,520
Speaker 3: gambling and do you think that it is kind of

634
00:35:40,560 --> 00:35:44,440
Speaker 3: opening doorways to you know, a new way of people

635
00:35:44,600 --> 00:35:49,200
Speaker 3: just instant gratification gambling on everything in society.

636
00:35:49,960 --> 00:35:51,480
Speaker 5: I think it's a little bit different.

637
00:35:52,600 --> 00:35:58,680
Speaker 6: I mean, if you look at financial markets, there's been

638
00:35:58,960 --> 00:36:02,640
Speaker 6: there's been a lot of people think trading and gambling

639
00:36:02,880 --> 00:36:05,040
Speaker 6: are one and the same. I think it's a little

640
00:36:05,040 --> 00:36:09,080
Speaker 6: bit different, and I think every financial market has been

641
00:36:09,840 --> 00:36:12,960
Speaker 6: sort of like under this attack. When future trading first

642
00:36:13,040 --> 00:36:16,560
Speaker 6: rolled out to retail a few decades ago, you know,

643
00:36:16,680 --> 00:36:18,880
Speaker 6: a lot of people ask this question, why is a

644
00:36:18,920 --> 00:36:23,240
Speaker 6: retail investor speculating on the price of oil or corn.

645
00:36:23,800 --> 00:36:28,200
Speaker 6: They're certainly not hedging their corn exposure in any significant way.

646
00:36:30,000 --> 00:36:33,200
Speaker 6: And I think the answer is, in order for a

647
00:36:33,320 --> 00:36:37,399
Speaker 6: market to work, you need speculators. And then some people say, well,

648
00:36:37,400 --> 00:36:40,040
Speaker 6: you know, what's the difference between speculation and gambling. It's

649
00:36:40,120 --> 00:36:43,040
Speaker 6: kind of two words describing the same thing. You're making

650
00:36:43,120 --> 00:36:46,800
Speaker 6: a short term price prediction on what's going to happen,

651
00:36:48,520 --> 00:36:51,120
Speaker 6: and you know you're putting your money, putting money behind that.

652
00:36:51,239 --> 00:36:53,439
Speaker 6: And of course when you're putting money behind a short

653
00:36:53,520 --> 00:36:58,040
Speaker 6: term price prediction, there's risk involved. But I think we

654
00:36:58,120 --> 00:37:03,080
Speaker 6: need the speculators because without the speculators, the market isn't

655
00:37:03,800 --> 00:37:08,360
Speaker 6: effective for the hedgers, So every market requires speculation in

656
00:37:08,480 --> 00:37:12,200
Speaker 6: order in order to work. Now, I don't think everyone

657
00:37:12,280 --> 00:37:17,200
Speaker 6: should be speculating with all of their money, but I

658
00:37:17,200 --> 00:37:21,560
Speaker 6: think what we're seeing is people have different buckets. You know,

659
00:37:21,600 --> 00:37:26,480
Speaker 6: they have. Even the most active traders that we have

660
00:37:26,600 --> 00:37:29,960
Speaker 6: on the platform, those are the ones that tend to

661
00:37:29,960 --> 00:37:32,720
Speaker 6: be most likely to open up retirement accounts as well.

662
00:37:33,080 --> 00:37:35,440
Speaker 6: So you know, we do have people that are just

663
00:37:35,640 --> 00:37:40,480
Speaker 6: using Robinhood for trading, but if you take a typical

664
00:37:40,600 --> 00:37:43,000
Speaker 6: active trader, they tend to be the ones that use

665
00:37:43,080 --> 00:37:45,200
Speaker 6: us for all of their things, so that they'll have

666
00:37:45,239 --> 00:37:48,320
Speaker 6: a retirement account, they'll have, you know, a discretionary and

667
00:37:48,320 --> 00:37:50,960
Speaker 6: maybe they'll have a dividend portfolio. We rolled out a

668
00:37:51,080 --> 00:37:55,000
Speaker 6: nice feature called multiple brokerage Accounts, which actually lets you

669
00:37:55,040 --> 00:37:58,000
Speaker 6: put your money in different buckets. And you know that

670
00:37:58,719 --> 00:38:01,400
Speaker 6: increasingly we have bangs, So we've got there, you know,

671
00:38:01,520 --> 00:38:04,560
Speaker 6: checking and savings accounts with us. So what it looks

672
00:38:04,680 --> 00:38:08,400
Speaker 6: like is a trader comes in, maybe they come for

673
00:38:08,440 --> 00:38:12,840
Speaker 6: prediction markets increasingly, or crypto or stock and options trading,

674
00:38:13,360 --> 00:38:17,440
Speaker 6: and then they open up a bunch of accounts with us,

675
00:38:17,520 --> 00:38:19,520
Speaker 6: they use a lot of our products, and then all

676
00:38:19,560 --> 00:38:24,480
Speaker 6: of their ideally all of their money ends up at Robinhood.

677
00:38:24,840 --> 00:38:28,719
Speaker 6: But yeah, so in a hypothetical world where everyone was

678
00:38:28,840 --> 00:38:30,960
Speaker 6: just speculating one hundred percent of their money, I think

679
00:38:31,000 --> 00:38:34,439
Speaker 6: that would be not great for society. But that's that's

680
00:38:34,440 --> 00:38:37,799
Speaker 6: not what we're seeing. And in terms of what we

681
00:38:37,880 --> 00:38:41,480
Speaker 6: incentivize as a company, you know, the behavior that we incentivize,

682
00:38:42,760 --> 00:38:45,839
Speaker 6: we incentivize retirement. So a retirement account is the one

683
00:38:45,880 --> 00:38:49,640
Speaker 6: where rock bottom costs three percent match, so we actually

684
00:38:49,640 --> 00:38:52,839
Speaker 6: incentivize you to put to put money in and that's

685
00:38:52,880 --> 00:38:56,279
Speaker 6: been incredibly successful, over twenty five billion in assets, one

686
00:38:56,280 --> 00:39:00,920
Speaker 6: and a half million funded retirement accounts. I think among

687
00:39:00,960 --> 00:39:04,040
Speaker 6: the fastest growing, if not the singular fastest growing retirement

688
00:39:04,120 --> 00:39:07,680
Speaker 6: product of all time. So what we really want to

689
00:39:07,680 --> 00:39:11,640
Speaker 6: build is we want to be your financial super app.

690
00:39:11,719 --> 00:39:14,880
Speaker 6: We want to be your primary and your secondary financial account.

691
00:39:15,120 --> 00:39:16,160
Speaker 5: So all of your.

692
00:39:16,000 --> 00:39:21,000
Speaker 6: Activities should be should be done at Robinhood. And you

693
00:39:21,120 --> 00:39:23,759
Speaker 6: raise the integrity concern, Well, how do you know that

694
00:39:23,800 --> 00:39:29,600
Speaker 6: someone's not, you know, taking advantage of their inside information

695
00:39:29,960 --> 00:39:32,719
Speaker 6: to make money on these things? And I think this

696
00:39:32,800 --> 00:39:38,279
Speaker 6: is a criticism that you can levy on you know,

697
00:39:38,320 --> 00:39:42,000
Speaker 6: the conventional sports books as well, and they've gotten into

698
00:39:42,040 --> 00:39:44,440
Speaker 6: some heat for that, and they're saying, well, this is

699
00:39:44,480 --> 00:39:47,160
Speaker 6: why it has to be regulated by the States, because

700
00:39:47,160 --> 00:39:51,239
Speaker 6: we have all the machinery. Well, the financial markets have

701
00:39:51,239 --> 00:39:55,880
Speaker 6: been dealing with market integrity concerns for decades. Like you

702
00:39:55,880 --> 00:39:59,520
Speaker 6: can imagine, it's pretty analogous to a corporate insider or

703
00:39:59,560 --> 00:40:03,560
Speaker 6: someone that works at a company using information that they

704
00:40:03,680 --> 00:40:08,719
Speaker 6: have on a in on an upcoming product launch to

705
00:40:08,760 --> 00:40:12,560
Speaker 6: make money. And you know, we have robust safeguards in

706
00:40:12,600 --> 00:40:18,359
Speaker 6: the form of trade surveillance, monitoring, And it's actually one

707
00:40:18,360 --> 00:40:21,080
Speaker 6: of the benefits of doing this in a in a

708
00:40:21,160 --> 00:40:26,120
Speaker 6: regulatory environment that has all of that set up, rather

709
00:40:26,200 --> 00:40:30,200
Speaker 6: than you know, doing it offshore where all bets are

710
00:40:30,239 --> 00:40:33,600
Speaker 6: off no pun intended, and there's no control, so that

711
00:40:33,920 --> 00:40:36,319
Speaker 6: it's happening anyway people want to do it. It's like

712
00:40:36,360 --> 00:40:39,680
Speaker 6: a growing regulated market, and I think it's better to

713
00:40:39,800 --> 00:40:44,759
Speaker 6: have it in a place that has controls than the alternative.

714
00:40:44,920 --> 00:40:47,960
Speaker 1: Is there a part of you in the team that says,

715
00:40:48,080 --> 00:40:50,239
Speaker 1: let's meet our customer base where they are or maybe

716
00:40:50,239 --> 00:40:52,120
Speaker 1: where our future customer base is. Right, if we know

717
00:40:52,600 --> 00:40:56,040
Speaker 1: that we've seen the spike of DraftKings, we've seen Flutter,

718
00:40:56,080 --> 00:40:58,000
Speaker 1: which obviously owns FanDuel.

719
00:40:58,280 --> 00:41:00,280
Speaker 4: We've seen casino.

720
00:41:00,600 --> 00:41:03,600
Speaker 1: Apps come and just take over, right even New York

721
00:41:03,640 --> 00:41:06,120
Speaker 1: haven't sports betting now what we've seen income If we

722
00:41:06,200 --> 00:41:09,320
Speaker 1: know that they're there, if we order for predictive markets,

723
00:41:09,440 --> 00:41:13,560
Speaker 1: is an opportunity to sees go from one spectrum to say, hey,

724
00:41:13,640 --> 00:41:16,880
Speaker 1: there's more things to offer outside of just the sports betting.

725
00:41:17,000 --> 00:41:19,560
Speaker 1: There are the retirement plans, there are broketure accounts that

726
00:41:19,600 --> 00:41:20,040
Speaker 1: you can open.

727
00:41:20,400 --> 00:41:22,480
Speaker 4: Is part of it. Let's meet them where we're at.

728
00:41:22,520 --> 00:41:24,839
Speaker 1: So we can convert them as well over to what

729
00:41:24,880 --> 00:41:26,279
Speaker 1: we have as a totality.

730
00:41:27,120 --> 00:41:28,200
Speaker 5: I think that's a big part of it.

731
00:41:28,239 --> 00:41:30,160
Speaker 6: I mean when I say we want to be your

732
00:41:30,200 --> 00:41:34,560
Speaker 6: primary and secondary financial account, what I really mean is

733
00:41:35,360 --> 00:41:38,160
Speaker 6: you should deposit your paycheck into robin Hood Banking. We

734
00:41:38,200 --> 00:41:40,440
Speaker 6: should be the place where you have your savings account,

735
00:41:40,560 --> 00:41:44,719
Speaker 6: your emergency fund, and you should of course have your

736
00:41:44,719 --> 00:41:50,239
Speaker 6: retirement and if you want passively managed investments, we've got

737
00:41:50,280 --> 00:41:54,239
Speaker 6: robbin Hood Strategies, which I think is far and away

738
00:41:54,280 --> 00:41:57,480
Speaker 6: the best digital advice product on the market that launched

739
00:41:57,520 --> 00:41:59,799
Speaker 6: earlier this year and rapidly went to.

740
00:41:59,800 --> 00:42:01,520
Speaker 4: Over a build an educational standpoint.

741
00:42:02,080 --> 00:42:05,440
Speaker 6: Well from educational standpoint for sure, but also just if

742
00:42:05,480 --> 00:42:08,400
Speaker 6: you want a money button where you just put money

743
00:42:08,480 --> 00:42:13,080
Speaker 6: in the account and it's invested for you reasonably at

744
00:42:13,120 --> 00:42:16,160
Speaker 6: the lowest possible costs, I don't think there's a better

745
00:42:16,400 --> 00:42:20,319
Speaker 6: digital advice product like robo advice is what it competes with.

746
00:42:20,960 --> 00:42:26,919
Speaker 6: And then of course your discretionary trading and investing. So yeah,

747
00:42:26,920 --> 00:42:30,239
Speaker 6: we think we can serve all of your dollars. Right,

748
00:42:30,320 --> 00:42:34,080
Speaker 6: your money should come into Robinhood and essentially we should

749
00:42:34,080 --> 00:42:36,239
Speaker 6: make it so that you never feel like you have

750
00:42:36,280 --> 00:42:40,839
Speaker 6: to transfer money out. And I think when we saw

751
00:42:40,920 --> 00:42:47,160
Speaker 6: the rise of sports betting, which happened with the deregulation

752
00:42:47,280 --> 00:42:50,920
Speaker 6: of gambling at the end of the last decade, you know,

753
00:42:51,800 --> 00:42:55,640
Speaker 6: and you see the articles where actually it's been growing

754
00:42:55,680 --> 00:42:58,480
Speaker 6: incredibly quickly. Young people especially are doing more of it.

755
00:42:58,840 --> 00:43:01,839
Speaker 6: I think we had a little bit of a choice

756
00:43:01,880 --> 00:43:04,640
Speaker 6: to make. You know, do we fight against this, you know,

757
00:43:04,680 --> 00:43:06,800
Speaker 6: do we go out and say, you know, we're against

758
00:43:06,840 --> 00:43:11,080
Speaker 6: it and people shouldn't be doing it, or do we actually, uh,

759
00:43:12,400 --> 00:43:15,520
Speaker 6: you know, take the stance that we think people should

760
00:43:15,560 --> 00:43:18,440
Speaker 6: be free to do whatever they want with their money,

761
00:43:18,520 --> 00:43:20,680
Speaker 6: of course, within reason, and we want to make it

762
00:43:20,719 --> 00:43:25,759
Speaker 6: a safe environment for them to do those things. And

763
00:43:25,840 --> 00:43:28,920
Speaker 6: I think the reality is there is a lot of ways,

764
00:43:29,840 --> 00:43:33,320
Speaker 6: there's a lot of ways out there that you could

765
00:43:35,400 --> 00:43:39,160
Speaker 6: not even invest. But also just like spend money frivolously.

766
00:43:39,560 --> 00:43:43,640
Speaker 6: I mean, we're just being bombarded with ads for buying

767
00:43:43,680 --> 00:43:46,760
Speaker 6: different things, and you know, not not even just money,

768
00:43:46,800 --> 00:43:51,520
Speaker 6: but time all these like digital video platforms that are

769
00:43:52,000 --> 00:43:56,480
Speaker 6: just engaging us and sucking up our time. So uh,

770
00:43:57,880 --> 00:44:00,279
Speaker 6: if you look at you know, the broader things that

771
00:44:00,320 --> 00:44:03,239
Speaker 6: are keeping you from doing good behaviors, there's a lot

772
00:44:03,239 --> 00:44:07,080
Speaker 6: of distractions out there, And I actually worry less broadly

773
00:44:07,080 --> 00:44:10,920
Speaker 6: about sports betting than you know, social media becoming super

774
00:44:10,960 --> 00:44:13,919
Speaker 6: addictive and just sucking up all of our free time

775
00:44:14,080 --> 00:44:17,480
Speaker 6: because time is also money. Right, You're spending four hours

776
00:44:17,520 --> 00:44:21,480
Speaker 6: a day on social media, that's that's that's time you

777
00:44:21,520 --> 00:44:27,120
Speaker 6: could be spending doing other things. So yeah, I think

778
00:44:27,320 --> 00:44:30,239
Speaker 6: I think that at the end of the day, you know,

779
00:44:30,680 --> 00:44:33,000
Speaker 6: people have to make their their own decisions for how

780
00:44:33,000 --> 00:44:35,799
Speaker 6: to spend their time and money, and we have to

781
00:44:35,840 --> 00:44:39,319
Speaker 6: do the best to help them do do things that

782
00:44:39,360 --> 00:44:43,360
Speaker 6: are good. But ultimately, you know, the the users in charge.

783
00:44:44,320 --> 00:44:47,839
Speaker 3: Do you think that there's gonna be AI bubble? And

784
00:44:48,200 --> 00:44:50,880
Speaker 3: do you think that the economy as a whole is

785
00:44:51,160 --> 00:44:53,160
Speaker 3: headed in a negative dimension? A lot of people are

786
00:44:53,200 --> 00:44:55,279
Speaker 3: forecasting a recession. Some people think that we've been in

787
00:44:55,360 --> 00:44:58,719
Speaker 3: a recession. So what'sh your thoughts on a greater economy

788
00:44:58,800 --> 00:45:01,480
Speaker 3: going into next and a year after, and what's your

789
00:45:01,480 --> 00:45:06,040
Speaker 3: thoughts on so much talk about the AI bust happening?

790
00:45:07,640 --> 00:45:13,200
Speaker 6: Yeah, I mean, to some degree, we're always in you know,

791
00:45:13,440 --> 00:45:18,920
Speaker 6: no new technology that's as popular as AI is just

792
00:45:19,160 --> 00:45:23,600
Speaker 6: a smooth up into the right right, people get excited

793
00:45:23,640 --> 00:45:26,600
Speaker 6: about things. There's corrections. You saw it with crypto, you

794
00:45:26,640 --> 00:45:29,600
Speaker 6: saw it with the Internet in the dot com. It's

795
00:45:29,640 --> 00:45:32,600
Speaker 6: a question of where we are in that cycle. And

796
00:45:33,200 --> 00:45:36,239
Speaker 6: my take is we're still rather early, Like we haven't

797
00:45:36,280 --> 00:45:40,600
Speaker 6: even seen AI I pos yet. Right, We've got two

798
00:45:40,880 --> 00:45:43,920
Speaker 6: companies that are really, really big AI native companies, in

799
00:45:44,040 --> 00:45:47,600
Speaker 6: Vidia and Google. You look at them from a fundamental standpoint,

800
00:45:47,640 --> 00:45:51,279
Speaker 6: I don't think their price earnings are completely out of

801
00:45:51,360 --> 00:46:00,000
Speaker 6: whack by historical measures. So yeah, near term, I would

802
00:46:00,160 --> 00:46:07,920
Speaker 6: say that public markets, they they don't seem overly like,

803
00:46:07,960 --> 00:46:11,440
Speaker 6: they don't seem like they're overvaluing what we're seeing in

804
00:46:11,520 --> 00:46:12,240
Speaker 6: AI yet.

805
00:46:12,920 --> 00:46:13,160
Speaker 2: Uh.

806
00:46:13,200 --> 00:46:15,240
Speaker 6: And I don't think a lot of the the AI

807
00:46:15,320 --> 00:46:20,080
Speaker 6: companies that are private h. I mean, you know, you

808
00:46:20,120 --> 00:46:25,600
Speaker 6: can you can debate how real the data center build

809
00:46:25,640 --> 00:46:29,120
Speaker 6: out is going to end up being. And I think

810
00:46:29,120 --> 00:46:34,240
Speaker 6: some of those things are rather complicated to to parse.

811
00:46:34,440 --> 00:46:37,080
Speaker 6: You know, the spend commitments with the chips, but if

812
00:46:37,120 --> 00:46:39,520
Speaker 6: you look at the fundamentals, people are buying chips. The

813
00:46:39,520 --> 00:46:40,520
Speaker 6: models are improving.

814
00:46:41,280 --> 00:46:41,400
Speaker 1: Uh.

815
00:46:41,800 --> 00:46:45,000
Speaker 6: The researchers say, you know, they don't see an end

816
00:46:45,080 --> 00:46:49,719
Speaker 6: to reinforcement learning and pre training seems intact. So the

817
00:46:49,760 --> 00:46:54,960
Speaker 6: models are continuing to get smarter, which makes me feel like,

818
00:46:55,800 --> 00:46:58,440
Speaker 6: at least in the near term, we're gonna we're gonna

819
00:46:58,480 --> 00:47:00,400
Speaker 6: keep seeing AI driving forward.

820
00:47:00,880 --> 00:47:01,280
Speaker 4: Yeah.

821
00:47:01,360 --> 00:47:05,200
Speaker 1: So we talked about predictive markets, but one of the

822
00:47:05,200 --> 00:47:09,759
Speaker 1: biggest revenue models for you guys lies in options trading. Yeah,

823
00:47:09,840 --> 00:47:14,319
Speaker 1: zero day trading, futures trading. With the new technology that

824
00:47:14,360 --> 00:47:17,040
Speaker 1: you guys launched last year. Talk about the impact that

825
00:47:17,080 --> 00:47:19,319
Speaker 1: it's had obviously on the company and where you're seeing

826
00:47:19,360 --> 00:47:21,759
Speaker 1: your retail investors. Are they staying, are you seeing more

827
00:47:21,800 --> 00:47:22,800
Speaker 1: people in those spaces?

828
00:47:23,080 --> 00:47:28,800
Speaker 6: Yeah. Legend has been growing remarkably quickly. So Legend is

829
00:47:28,840 --> 00:47:34,319
Speaker 6: our desktop active trader platform, and you know, month over

830
00:47:34,400 --> 00:47:38,959
Speaker 6: month we're seeing we're seeing continued growth and acceleration there,

831
00:47:39,560 --> 00:47:43,360
Speaker 6: and it's sort of like activity we wouldn't have gotten otherwise.

832
00:47:43,719 --> 00:47:47,480
Speaker 6: So I think active traders before we rolled out Legend,

833
00:47:47,520 --> 00:47:50,440
Speaker 6: they were using our competitors because they need multiple screens,

834
00:47:50,800 --> 00:47:54,320
Speaker 6: they need, you know, to chart on the same page

835
00:47:54,360 --> 00:47:57,960
Speaker 6: as entering the order, so we weren't serving them optimally

836
00:47:58,880 --> 00:48:03,799
Speaker 6: on mobile. And these are our most engaged customers. Every

837
00:48:03,800 --> 00:48:05,720
Speaker 6: time I ask, you know, how can we make Legend

838
00:48:05,719 --> 00:48:09,520
Speaker 6: better on social media? I just get hundreds of comments

839
00:48:09,560 --> 00:48:12,960
Speaker 6: of all of the specific things they want us to improve.

840
00:48:13,480 --> 00:48:16,520
Speaker 6: So what gets me most excited is it's already quite big.

841
00:48:16,760 --> 00:48:21,120
Speaker 6: People are already quite happy, and I have just just

842
00:48:21,160 --> 00:48:25,440
Speaker 6: a endless list of more things that they want, and

843
00:48:25,480 --> 00:48:27,640
Speaker 6: I've got a great team on it that's like moving

844
00:48:27,680 --> 00:48:30,120
Speaker 6: really fast and super motivated. So I think that's going

845
00:48:30,200 --> 00:48:33,600
Speaker 6: to be a tailwind for the business. And we're doing

846
00:48:33,640 --> 00:48:37,520
Speaker 6: things on Legend that nobody else is doing, incorporating AI

847
00:48:37,680 --> 00:48:42,000
Speaker 6: tools to make it even more differentiated experience for our traders.

848
00:48:43,120 --> 00:48:46,160
Speaker 6: I think for an active trader, they should feel like

849
00:48:46,200 --> 00:48:50,400
Speaker 6: they're at a disadvantage using any other platform than Robinhood

850
00:48:51,640 --> 00:48:55,600
Speaker 6: and the couple other things we're doing. Besides the AI integrations,

851
00:48:56,239 --> 00:49:00,440
Speaker 6: we've added index options, which was a very common quest.

852
00:49:00,800 --> 00:49:04,360
Speaker 6: Index options they trade around the clock. It allows you

853
00:49:04,440 --> 00:49:09,239
Speaker 6: to hedge with the broad based market or index and

854
00:49:09,680 --> 00:49:13,279
Speaker 6: really quickly, we've just grown our market share there to

855
00:49:13,320 --> 00:49:15,360
Speaker 6: the point where you know, we're we're now among the

856
00:49:15,360 --> 00:49:20,000
Speaker 6: biggest players, if not the biggest option same story that's

857
00:49:20,000 --> 00:49:22,879
Speaker 6: been more steady. We were already quite big, but if

858
00:49:22,880 --> 00:49:25,640
Speaker 6: you look at the market share numbers, which which are public,

859
00:49:27,120 --> 00:49:28,680
Speaker 6: we're either number one.

860
00:49:28,600 --> 00:49:31,439
Speaker 5: Or TI tied to number one every time number one.

861
00:49:31,520 --> 00:49:36,000
Speaker 6: Yeah. So so we've been doing well. Yeah, and and

862
00:49:36,080 --> 00:49:38,279
Speaker 6: I think we're on a path, but yeah, there's more

863
00:49:38,320 --> 00:49:41,480
Speaker 6: to do. We're still under penetrated on web, where a

864
00:49:41,480 --> 00:49:44,000
Speaker 6: lot of the of the market is. So I see

865
00:49:44,200 --> 00:49:48,360
Speaker 6: Legend continuing to drive that. Our AI tools are still nascent.

866
00:49:48,520 --> 00:49:50,200
Speaker 6: I think those are going to get a lot better.

867
00:49:51,120 --> 00:49:53,200
Speaker 5: And then you know, you.

868
00:49:53,160 --> 00:49:57,400
Speaker 6: Could see actually prediction markets high overlap with our active traders.

869
00:49:57,680 --> 00:50:00,759
Speaker 6: You could see that becoming more integrated into Legend. It's

870
00:50:00,800 --> 00:50:03,279
Speaker 6: not even on Legend yet, and across all of our

871
00:50:03,320 --> 00:50:04,200
Speaker 6: other surfaces.

872
00:50:05,160 --> 00:50:06,640
Speaker 3: So before we leave, I just wanted to ask you

873
00:50:06,680 --> 00:50:09,000
Speaker 3: a question about I know you and a lot of

874
00:50:09,000 --> 00:50:12,200
Speaker 3: other tech billionaires have spent a lot of time in DC. Yeah,

875
00:50:12,239 --> 00:50:15,360
Speaker 3: so I want to get your thoughts on on the

876
00:50:15,400 --> 00:50:19,040
Speaker 3: current administration, your conversations with the president and different initiatives.

877
00:50:19,080 --> 00:50:22,279
Speaker 3: And then I think you have another story to tell

878
00:50:22,320 --> 00:50:25,200
Speaker 3: about another politician that's been you a gift. Oh yes, yeah,

879
00:50:25,239 --> 00:50:27,600
Speaker 3: let's talk about politics. Le's talk about politics for a minute,

880
00:50:27,600 --> 00:50:28,000
Speaker 3: shall we.

881
00:50:28,360 --> 00:50:30,560
Speaker 6: Let's do it. I mean, from from the very beginning,

882
00:50:30,760 --> 00:50:33,799
Speaker 6: I think Robin Hood has built ourselves up to be

883
00:50:34,960 --> 00:50:37,520
Speaker 6: and you could say at the beginning, it was inadvertent.

884
00:50:37,560 --> 00:50:41,160
Speaker 6: I think the philosophy of most Silicon Valley companies would

885
00:50:41,200 --> 00:50:43,319
Speaker 6: be stay out of politics, at least when we got

886
00:50:43,320 --> 00:50:47,880
Speaker 6: started in the middle of last decade, just build your

887
00:50:47,920 --> 00:50:52,520
Speaker 6: stuff and you know, probably ignore what's going on in Washington.

888
00:50:53,640 --> 00:50:53,759
Speaker 1: Uh.

889
00:50:54,040 --> 00:50:57,359
Speaker 6: And we started during the Obama administration, so we've gone

890
00:50:57,400 --> 00:51:01,439
Speaker 6: through Obama, Trump one, Biden and now. So we've had

891
00:51:01,680 --> 00:51:06,359
Speaker 6: a good mix of you know, first being ignored, then

892
00:51:06,440 --> 00:51:11,160
Speaker 6: having generally favorable conditions during Trump won, but maybe not

893
00:51:11,200 --> 00:51:14,399
Speaker 6: as favorable as now, and then the Biden administration, which

894
00:51:14,440 --> 00:51:19,000
Speaker 6: was just outright hostile to crypto and retail trading in general.

895
00:51:19,080 --> 00:51:22,080
Speaker 6: So we've kind of seen everything, and I think it

896
00:51:22,120 --> 00:51:26,720
Speaker 6: became clear around twenty nineteen twenty twenty when we became

897
00:51:26,800 --> 00:51:29,319
Speaker 6: big that you know, the strategy of just doing our

898
00:51:29,360 --> 00:51:32,680
Speaker 6: business in Silicon Valley and ignoring Washington was not working

899
00:51:32,760 --> 00:51:36,719
Speaker 6: because our competitors, the big brokers and financial firms, were

900
00:51:36,840 --> 00:51:40,319
Speaker 6: very plugged into Washington. And so you know, this led

901
00:51:40,360 --> 00:51:45,880
Speaker 6: to politicians, lawmakers, regulators who were hearing from all these people,

902
00:51:46,200 --> 00:51:49,440
Speaker 6: just hearing negative things. And so we made a presence.

903
00:51:49,480 --> 00:51:51,800
Speaker 6: We started investing quite a bit. We have a big

904
00:51:51,960 --> 00:51:56,440
Speaker 6: office in DC, full office with you know, not just

905
00:51:57,000 --> 00:52:01,279
Speaker 6: government affairs and legal but actually engineering security, you know,

906
00:52:01,320 --> 00:52:02,280
Speaker 6: a lot lots of people.

907
00:52:03,040 --> 00:52:03,440
Speaker 5: It helps.

908
00:52:03,480 --> 00:52:05,960
Speaker 6: I also grew up in the area. I was sort

909
00:52:06,000 --> 00:52:12,680
Speaker 6: of a DC local, so I felt at least I

910
00:52:12,719 --> 00:52:15,560
Speaker 6: knew where to go, you know, when when when when

911
00:52:15,840 --> 00:52:18,480
Speaker 6: when I'm in the car working my way over to Congress.

912
00:52:18,880 --> 00:52:22,839
Speaker 6: But yeah, it's it's always been. We've tried to go

913
00:52:23,280 --> 00:52:30,359
Speaker 6: on both sides. We Republicans have historically been more receptive, right,

914
00:52:30,480 --> 00:52:32,040
Speaker 6: I mean, I've been to the White House at least

915
00:52:32,040 --> 00:52:34,840
Speaker 6: five times this year, and I was not invited once

916
00:52:34,960 --> 00:52:37,960
Speaker 6: during the Biden administration, despite the fact that we're a big,

917
00:52:38,480 --> 00:52:43,760
Speaker 6: big financial company, you know, leading retail trading. So certainly

918
00:52:43,840 --> 00:52:47,200
Speaker 6: we appreciate that this this administration has been willing to

919
00:52:47,280 --> 00:52:54,040
Speaker 6: engage and actually make America the the center for financial services.

920
00:52:54,080 --> 00:52:56,680
Speaker 6: And they have great initiatives like the Trump Accounts, which

921
00:52:56,680 --> 00:53:00,640
Speaker 6: are encouraging equity ownership, which were very aligned with. So

922
00:53:01,200 --> 00:53:03,680
Speaker 6: because they've been so willing to engage in lead, we've

923
00:53:03,680 --> 00:53:06,200
Speaker 6: been more and more involved, and we see it as

924
00:53:06,200 --> 00:53:09,759
Speaker 6: an opportunity to further our mission. But it doesn't mean that,

925
00:53:11,200 --> 00:53:14,040
Speaker 6: you know, we're not engaging with the Democrats as well,

926
00:53:14,080 --> 00:53:18,080
Speaker 6: because some of the Democrats are also like less on

927
00:53:18,120 --> 00:53:21,680
Speaker 6: the hyper progressive socialist side and more middle of the road,

928
00:53:21,760 --> 00:53:24,360
Speaker 6: and you know, they want the US to also be

929
00:53:25,239 --> 00:53:30,239
Speaker 6: number one and in business and financial services, and so yeah,

930
00:53:30,280 --> 00:53:35,680
Speaker 6: we've continued to engage on both sides. And the thing

931
00:53:35,719 --> 00:53:40,840
Speaker 6: you referred to earlier was, yeah, I got a burner

932
00:53:40,880 --> 00:53:44,520
Speaker 6: phone sent to me by by Governor Gavin Newsome. And

933
00:53:45,080 --> 00:53:46,920
Speaker 6: I was on a trip and I come back and

934
00:53:47,640 --> 00:53:50,040
Speaker 6: you know, my team tells me Gavin Newsom sent you

935
00:53:50,120 --> 00:53:53,279
Speaker 6: a flip phone, and like, what do you mean the

936
00:53:53,440 --> 00:53:57,880
Speaker 6: Gavin Newsom, the governor, and I'm based in Menlo Park, California.

937
00:53:58,080 --> 00:53:59,920
Speaker 6: They said, yes, you know, we checked with his team.

938
00:54:00,120 --> 00:54:00,640
Speaker 5: It's real.

939
00:54:01,200 --> 00:54:03,800
Speaker 6: Everyone thought it was a little bit strange, but okay.

940
00:54:03,840 --> 00:54:07,319
Speaker 6: And I opened up the phone and it's Gavin Newsome's

941
00:54:07,560 --> 00:54:13,680
Speaker 6: number in there, and of course I call it immediately, Gavin.

942
00:54:14,200 --> 00:54:19,280
Speaker 6: Gavin Newsom picks up and like, Governor, it's me vlat Tenev,

943
00:54:19,360 --> 00:54:20,160
Speaker 6: I got your phone.

944
00:54:20,239 --> 00:54:21,600
Speaker 5: Thank you. It's very nice.

945
00:54:22,080 --> 00:54:25,439
Speaker 6: And you know, to his credit, he said, look, there's

946
00:54:25,480 --> 00:54:28,520
Speaker 6: a perception that the state of California and me personally

947
00:54:28,600 --> 00:54:32,760
Speaker 6: or against entrepreneurship. We don't want we're an inhospitable place

948
00:54:32,800 --> 00:54:36,960
Speaker 6: for you to build companies. I want you to know that,

949
00:54:37,200 --> 00:54:38,880
Speaker 6: you know you can call me at any time, and

950
00:54:38,960 --> 00:54:40,799
Speaker 6: anytime you have a problem or you want to talk

951
00:54:40,800 --> 00:54:43,000
Speaker 6: about how we can improve the state and make it

952
00:54:43,040 --> 00:54:44,920
Speaker 6: a better place to do business.

953
00:54:45,200 --> 00:54:46,200
Speaker 5: I'll pick up the call.

954
00:54:46,440 --> 00:54:49,520
Speaker 6: And other people got this phone too, so it wasn't

955
00:54:49,560 --> 00:54:49,839
Speaker 6: just me.

956
00:54:50,400 --> 00:54:52,080
Speaker 2: It was like a marketing strategy because he could have

957
00:54:52,120 --> 00:54:52,840
Speaker 2: just gave you his number.

958
00:54:53,200 --> 00:54:55,920
Speaker 5: That's true, Yeah.

959
00:54:57,200 --> 00:54:58,920
Speaker 2: Can you only call Can you only call him from

960
00:54:58,960 --> 00:55:00,160
Speaker 2: that phone?

961
00:55:00,320 --> 00:55:02,479
Speaker 5: I haven't tried. I've only tried calling them from.

962
00:55:02,360 --> 00:55:05,040
Speaker 4: That point immediately, Laura, let's get on this.

963
00:55:05,120 --> 00:55:07,400
Speaker 6: But I appreciated the gesture, So, I mean, it just

964
00:55:07,480 --> 00:55:10,719
Speaker 6: shows you that I think that there are democrats that

965
00:55:10,760 --> 00:55:14,560
Speaker 6: are open to engaging with business and like what we're

966
00:55:14,560 --> 00:55:15,320
Speaker 6: doing as well.

967
00:55:15,680 --> 00:55:19,120
Speaker 5: And I think that, yeah, I.

968
00:55:19,120 --> 00:55:24,080
Speaker 6: Mean, we're obviously happy to engage with anyone on both

969
00:55:24,120 --> 00:55:27,759
Speaker 6: sides to further the mission of making everyone owners of

970
00:55:28,120 --> 00:55:31,880
Speaker 6: this great American industry. But of course I do appreciate

971
00:55:31,960 --> 00:55:34,839
Speaker 6: what this current administration is doing. They've been doing really

972
00:55:34,840 --> 00:55:38,680
Speaker 6: good things in general. I think they're getting some of

973
00:55:38,719 --> 00:55:42,760
Speaker 6: the important things right, and the invest America Trump Accounts

974
00:55:42,800 --> 00:55:45,560
Speaker 6: initiative in particular, I think can change the world if

975
00:55:45,680 --> 00:55:49,359
Speaker 6: implemented correctly. So with that one, I'm very excited. And

976
00:55:49,760 --> 00:55:52,319
Speaker 6: of course I've told the President and the Treasury who's

977
00:55:52,360 --> 00:55:56,600
Speaker 6: overseeing it, that whatever we can do to make sure

978
00:55:56,640 --> 00:56:00,400
Speaker 6: it goes smoothly, it's high quality. People actually use the account, Senate,

979
00:56:00,520 --> 00:56:03,200
Speaker 6: it's not just buried somewhere.

980
00:56:02,840 --> 00:56:05,120
Speaker 5: Inaccessible, and explain that what that is.

981
00:56:05,480 --> 00:56:05,719
Speaker 2: Yeah.

982
00:56:05,719 --> 00:56:08,480
Speaker 6: So there's an initiative that passed as part of the

983
00:56:08,560 --> 00:56:12,320
Speaker 6: Budget Reconciliation bill earlier this year that'll give each child

984
00:56:12,360 --> 00:56:16,720
Speaker 6: born in this country an investment account with one thousand

985
00:56:16,800 --> 00:56:21,040
Speaker 6: dollars funded by Treasury, invested into a diversified portfolio of

986
00:56:21,280 --> 00:56:25,200
Speaker 6: think like S and P five hundred. Yeah, and you know,

987
00:56:25,360 --> 00:56:28,440
Speaker 6: it would just be passive. The investments would go in,

988
00:56:28,920 --> 00:56:32,359
Speaker 6: it would grow, and you know, when the child hits

989
00:56:32,400 --> 00:56:35,920
Speaker 6: eighteen and eventually and then thirty five, there's hurdles where

990
00:56:36,080 --> 00:56:41,160
Speaker 6: they assume greater control over that portfolio. But Michael Dell

991
00:56:41,239 --> 00:56:46,160
Speaker 6: and his wife Susan donated I think about six and

992
00:56:46,200 --> 00:56:49,360
Speaker 6: a half billion to increase to give two hundred and

993
00:56:49,360 --> 00:56:54,160
Speaker 6: fifty dollars to not just newborns, but backdated.

994
00:56:53,719 --> 00:56:57,280
Speaker 5: Everybody under ten years.

995
00:56:57,320 --> 00:56:59,120
Speaker 6: And I think you're going to see more and more

996
00:56:59,160 --> 00:57:02,680
Speaker 6: companies do interesting things. So one of the areas of

997
00:57:02,680 --> 00:57:04,440
Speaker 6: focus has been how do we make it as easy

998
00:57:04,480 --> 00:57:08,000
Speaker 6: as possible for money to flow into these accounts from

999
00:57:08,000 --> 00:57:11,960
Speaker 6: your family, from corporates and employers, from you know, your

1000
00:57:12,080 --> 00:57:15,560
Speaker 6: church or other religious organizations. How can we make this

1001
00:57:15,719 --> 00:57:20,440
Speaker 6: sort of like a multi generational giving platform that makes

1002
00:57:20,480 --> 00:57:24,360
Speaker 6: it as easy as possible to actually give money from

1003
00:57:24,520 --> 00:57:27,760
Speaker 6: us to the next generation. And to me, it's very

1004
00:57:27,800 --> 00:57:31,000
Speaker 6: powerful because in so many of the other things that

1005
00:57:31,040 --> 00:57:33,400
Speaker 6: we do, we're sort of like taking money from the

1006
00:57:33,440 --> 00:57:36,880
Speaker 6: future and spending it now, Like the national debt and

1007
00:57:36,920 --> 00:57:40,480
Speaker 6: big deficits are a form of that social security. There's

1008
00:57:40,520 --> 00:57:43,960
Speaker 6: also an element of that, like we're funding folks now

1009
00:57:44,240 --> 00:57:47,160
Speaker 6: and the debt is going to have to be paid

1010
00:57:47,240 --> 00:57:50,480
Speaker 6: for in the future, so I like to counteract that.

1011
00:57:50,640 --> 00:57:53,600
Speaker 6: The fact that this counteracts that, I think is very powerful.

1012
00:57:53,680 --> 00:57:56,720
Speaker 1: Yeah, and parents can put money into that account, and

1013
00:57:56,760 --> 00:57:59,360
Speaker 1: it's just the idea of compound and interest over time, Right,

1014
00:57:59,480 --> 00:58:02,400
Speaker 1: somebody gets that when they're born. By the time they're eighteen,

1015
00:58:02,680 --> 00:58:05,160
Speaker 1: it reaches a certain amount. Obviously, if you put more

1016
00:58:05,160 --> 00:58:08,400
Speaker 1: into it, there'll be more. Whereas when we started the

1017
00:58:08,400 --> 00:58:10,640
Speaker 1: conversation almost it was like, what happens to the kid

1018
00:58:10,800 --> 00:58:14,120
Speaker 1: who's graduating high school in twenty years and now can't

1019
00:58:14,120 --> 00:58:16,120
Speaker 1: find a job or maybe college is not affordable.

1020
00:58:16,320 --> 00:58:18,280
Speaker 4: That accountant is at least there for them to pursue

1021
00:58:18,280 --> 00:58:20,160
Speaker 4: other things. Entrepreneurship is one of those things that she

1022
00:58:20,280 --> 00:58:20,880
Speaker 4: was talking about.

1023
00:58:21,000 --> 00:58:25,560
Speaker 6: Yeah, absolutely, this is like a good foundation for you know,

1024
00:58:25,680 --> 00:58:29,120
Speaker 6: not just sort of a nest egg for the future financially, Yeah,

1025
00:58:29,240 --> 00:58:34,760
Speaker 6: but also I think it it gives people skin in

1026
00:58:34,800 --> 00:58:40,360
Speaker 6: the game. For American industries, like the biggest American companies,

1027
00:58:41,320 --> 00:58:46,080
Speaker 6: you'll sort of like make sure that, you know, young

1028
00:58:46,120 --> 00:58:48,760
Speaker 6: people feel like they have some ownership, some skin in

1029
00:58:48,800 --> 00:58:51,640
Speaker 6: the game. You know, they'll be less likely to want

1030
00:58:51,640 --> 00:58:54,040
Speaker 6: to burn the system down if they actually have some

1031
00:58:54,160 --> 00:58:57,160
Speaker 6: skin in the game and are incentive to protect it,

1032
00:58:57,440 --> 00:58:59,160
Speaker 6: which I think I think is a good thing because

1033
00:58:59,160 --> 00:59:01,040
Speaker 6: so many young people feel like they don't have skin

1034
00:59:01,120 --> 00:59:04,520
Speaker 6: in the game, and like, well, if if the American

1035
00:59:05,760 --> 00:59:10,640
Speaker 6: government or the financial markets aren't working for me, what's

1036
00:59:10,680 --> 00:59:14,080
Speaker 6: my incentive to you know, be in a supporter of

1037
00:59:14,520 --> 00:59:18,600
Speaker 6: free markets and ownership. And I think giving people that

1038
00:59:18,720 --> 00:59:22,840
Speaker 6: ownership is. Yeah, it is much much stronger. It's like

1039
00:59:23,280 --> 00:59:25,760
Speaker 6: when you own a piece of land or a house,

1040
00:59:26,200 --> 00:59:28,439
Speaker 6: you keep it in better condition. If you're just sort

1041
00:59:28,480 --> 00:59:31,040
Speaker 6: of like a visitor or even renting, you know, I

1042
00:59:31,120 --> 00:59:32,240
Speaker 6: don't care about it as much.

1043
00:59:32,800 --> 00:59:35,040
Speaker 1: My final question is this is probably my favorite quote

1044
00:59:35,040 --> 00:59:38,480
Speaker 1: of yours this year. It was in a journal over

1045
00:59:38,480 --> 00:59:41,400
Speaker 1: the weekend and they were talking about how you used

1046
00:59:41,440 --> 00:59:45,000
Speaker 1: to drive a modest Tesla car. Yes, and then the

1047
00:59:45,040 --> 00:59:47,840
Speaker 1: next quota says, why do I care about what other

1048
00:59:47,840 --> 00:59:50,840
Speaker 1: people perceive of the CEO of Rabin. We were talking

1049
00:59:50,840 --> 00:59:54,360
Speaker 1: about watches before it and the piece that talks about

1050
00:59:54,400 --> 00:59:55,520
Speaker 1: how you're collecting.

1051
00:59:57,280 --> 00:59:57,640
Speaker 5: Cars.

1052
00:59:57,680 --> 00:59:58,960
Speaker 4: At this point, when.

1053
00:59:58,760 --> 01:00:00,760
Speaker 6: Do we should acknowledge that you guys are wearing some

1054
01:00:00,920 --> 01:00:05,080
Speaker 6: very nice watches, as am I a Robinhood Court special here?

1055
01:00:05,200 --> 01:00:06,960
Speaker 2: Everything earned one is that one of one?

1056
01:00:07,760 --> 01:00:11,200
Speaker 6: No, no, no, we are we're testing it. We're testing

1057
01:00:11,240 --> 01:00:15,320
Speaker 6: it for broader distribution. So maybe at some point you'll

1058
01:00:15,360 --> 01:00:16,160
Speaker 6: be wearing these two.

1059
01:00:16,280 --> 01:00:17,640
Speaker 4: Maybe you'll see us in that well.

1060
01:00:17,800 --> 01:00:20,840
Speaker 1: Yeah, I just want to know, at what point during

1061
01:00:20,920 --> 01:00:24,080
Speaker 1: this past five ten years did you get to the

1062
01:00:24,120 --> 01:00:26,800
Speaker 1: reckoning of, like, you know what, I'm living life on

1063
01:00:26,880 --> 01:00:27,400
Speaker 1: my terms.

1064
01:00:28,440 --> 01:00:33,440
Speaker 6: I think it was probably either Yeah, probably end of

1065
01:00:33,760 --> 01:00:37,160
Speaker 6: somewhere between the end of twenty twenty two and the

1066
01:00:37,280 --> 01:00:42,760
Speaker 6: end of twenty twenty three. Yeah, when things were actually

1067
01:00:43,280 --> 01:00:51,880
Speaker 6: quite negative in Robinhood. And I think that that quote

1068
01:00:51,920 --> 01:00:54,960
Speaker 6: was taken a little bit out of context or I mean,

1069
01:00:55,000 --> 01:00:57,160
Speaker 6: I definitely said it, But what I was trying to

1070
01:00:57,200 --> 01:01:05,800
Speaker 6: communicate is that, you know, a lot of times, as

1071
01:01:05,840 --> 01:01:10,160
Speaker 6: a CEO or just as a human being, you're kind

1072
01:01:10,200 --> 01:01:13,440
Speaker 6: of pressured to do things a certain way based on appearances,

1073
01:01:13,520 --> 01:01:17,600
Speaker 6: how other people will will perceive them. Other people want things,

1074
01:01:17,640 --> 01:01:20,360
Speaker 6: so maybe I should like support them publicly. And I

1075
01:01:20,360 --> 01:01:23,480
Speaker 6: think there was a general shift of let me just

1076
01:01:23,520 --> 01:01:25,520
Speaker 6: think about what I think is right and what I

1077
01:01:25,640 --> 01:01:29,800
Speaker 6: want and communicate that rather than trying to like do

1078
01:01:30,000 --> 01:01:33,680
Speaker 6: things or communicate things just because I think that's what

1079
01:01:33,720 --> 01:01:37,720
Speaker 6: other people want to see. So I think authenticity in

1080
01:01:37,760 --> 01:01:41,240
Speaker 6: a nutshell is actually important. I think I've gone back

1081
01:01:41,280 --> 01:01:44,520
Speaker 6: and forth on this. I didn't want the outcome to

1082
01:01:44,560 --> 01:01:49,680
Speaker 6: be I really like nice things. Yeah, because I'm actually

1083
01:01:49,680 --> 01:01:55,880
Speaker 6: back to driving the Tesla and wearing the Court's watches.

1084
01:01:56,440 --> 01:01:58,680
Speaker 6: So yeah, it wasn't It wasn't as much of a

1085
01:01:58,760 --> 01:02:03,240
Speaker 6: statement about luxury and spending money, but more that, I

1086
01:02:03,240 --> 01:02:06,240
Speaker 6: think authenticity is important. And if you find yourself doing

1087
01:02:06,280 --> 01:02:12,040
Speaker 6: something just because it's the conventional wisdom and it's not

1088
01:02:12,120 --> 01:02:14,840
Speaker 6: making you happy, then you're probably doing the wrong thing.

1089
01:02:16,240 --> 01:02:18,760
Speaker 2: Well glad, thank you for your time. Appreciate it.

1090
01:02:19,240 --> 01:02:20,720
Speaker 5: Thank you always pleasure.

1091
01:02:21,200 --> 01:02:24,720
Speaker 4: Appreciate you having us man, Thank you you have it? Erners,

1092
01:02:24,720 --> 01:02:25,120
Speaker 4: what's up?

1093
01:02:25,200 --> 01:02:27,680
Speaker 1: You ever walk into a small business and everything just

1094
01:02:27,800 --> 01:02:31,000
Speaker 1: works like the checkout is fast, or seats are digital,

1095
01:02:31,520 --> 01:02:34,479
Speaker 1: tipping is a breeze and you're out the door before

1096
01:02:34,520 --> 01:02:38,680
Speaker 1: the line even builds Odds are they're using Square. We

1097
01:02:38,800 --> 01:02:41,360
Speaker 1: love supporting businesses that run on Square because it just

1098
01:02:41,400 --> 01:02:44,640
Speaker 1: feels seamless. Whether it's a local coffee shop, a vendor

1099
01:02:44,680 --> 01:02:46,960
Speaker 1: at a pop up market, or even one of our

1100
01:02:47,000 --> 01:02:50,640
Speaker 1: merch partners. Square makes it easy for them to take payments,

1101
01:02:50,880 --> 01:02:54,600
Speaker 1: manage inventory, and run their business with confidence, all from

1102
01:02:54,680 --> 01:02:57,520
Speaker 1: one simple system. One of the things we love most

1103
01:02:57,560 --> 01:03:01,480
Speaker 1: is seeing neighborhood businesses level up. Business West Indian spired

1104
01:03:01,520 --> 01:03:04,520
Speaker 1: writing our community that started with a small takeout counter.

1105
01:03:04,960 --> 01:03:07,640
Speaker 1: Now with Square they've been able to expand into a

1106
01:03:07,680 --> 01:03:11,440
Speaker 1: full sit down restaurant and even started catering events across

1107
01:03:11,440 --> 01:03:14,439
Speaker 1: the city. That's the kind of growth that inspires us,

1108
01:03:14,640 --> 01:03:17,880
Speaker 1: and it's powered by Square. Square is built for all

1109
01:03:17,920 --> 01:03:20,920
Speaker 1: types of businesses, from the corner bagel shop that turned

1110
01:03:20,960 --> 01:03:24,280
Speaker 1: into a local chain, to the specialty market with thousands

1111
01:03:24,320 --> 01:03:27,120
Speaker 1: of unique items, to the stylist who's been holding you

1112
01:03:27,200 --> 01:03:30,280
Speaker 1: down for years. If you're a business owner or even

1113
01:03:30,360 --> 01:03:33,880
Speaker 1: just thinking about launching something soon, Square is hands down

1114
01:03:33,920 --> 01:03:36,280
Speaker 1: one of the best tools out there to help you start,

1115
01:03:36,640 --> 01:03:40,200
Speaker 1: run and grow. It's not just about payments, it's about

1116
01:03:40,240 --> 01:03:42,800
Speaker 1: giving you time back so you can focus.

1117
01:03:42,440 --> 01:03:44,000
Speaker 4: On what matters most Ready.

1118
01:03:44,040 --> 01:03:47,440
Speaker 1: To see how Square can transform your business, visit Square

1119
01:03:47,520 --> 01:03:52,040
Speaker 1: dot com backslash, go backslash eyl to learn more that

1120
01:03:52,240 --> 01:03:57,680
Speaker 1: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.

1121
01:03:57,800 --> 01:04:00,240
Speaker 1: Let Square handle the back end so you can keep

1122
01:04:00,240 --> 01:04:01,400
Speaker 1: pushing your vision forward